IPO Market Will Need More Than Arm's Listing to Bring It Back to Life
- Successful debut for Arm could be a sign of optimism
- But economic clouds are seen holding back some would-be IPOs
Arm Holdings Ltd.’s highly anticipated IPO has sparked hopes that the moribund market for new listings will spring back to life. Not so fast, says a cohort of Wall Street pros.
All the problems that have waylaid the market for initial public offerings over the past 18 months — from an aggressive Federal Reserve to the threat of a global recession — remain in place, they say. Arm is different than other IPO wannabes that would raise a fraction that its reportedly seeking. For one, it’s massive in comparison, with $2.68 billion in sales and $524 million in net income last year. More importantly, it toils in the white-hot market for artificial intelligence.