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You have to change your life
Posted: 15 September 2023 07:42:44(UTC)
#1

Joined: 17/11/2021(UTC)
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Successfully listed on the Nasdaq yesterday, the market trading closing at $ 63.59 on turnover of $10B, valuing the company at $65B.
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1 user thanked You have to change your life for this post.
ANDREW FOSTER on 15/09/2023(UTC)
ANDREW FOSTER
Posted: 15 September 2023 07:58:38(UTC)
#2

Joined: 23/07/2019(UTC)
Posts: 8,101

I'm quite curious about how such a listing works with trackers...

I assume all the trackers have to buy.... does this create a spike in ARM share price?

Or do they gradually bring it in line over a few weeks?

Or some other mechanism..
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Wayne Hurdman
Posted: 15 September 2023 08:05:20(UTC)
#8

Joined: 31/01/2020(UTC)
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Quite disappointing they didnt opt fore the FTSE. Cambridge based company. :(
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Guest on 15/09/2023(UTC), You have to change your life on 08/02/2024(UTC)
Newbie
Posted: 15 September 2023 08:05:41(UTC)
#3

Joined: 31/01/2012(UTC)
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ANDREW FOSTER;279213 wrote:

I'm quite curious about how such a listing works with trackers...

I assume all the trackers have to buy.... does this create a spike in ARM share price?

Or do they gradually bring it in line over a few weeks?

Or some other mechanism..

ARM will not go in trackers in the usual way as it will not be in the index in the normal way.
This is due it listing as an ADS
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2 users thanked Newbie for this post.
Tim D on 15/09/2023(UTC), ANDREW FOSTER on 15/09/2023(UTC)
Tim D
Posted: 15 September 2023 08:19:55(UTC)
#5

Joined: 07/06/2017(UTC)
Posts: 8,883
Newbie;279218 wrote:
ARM will not go in trackers in the usual way as it will not be in the index in the normal way.
This is due it listing as an ADS


Can you expand please? Googling ARM ADS finds me nothing useful... not sure what an ADS is.

Interesting read at https://www.cnbc.com/202...will-not-be-buyers.html lists some other factors. The 10% free float seems like it might be a bit of an obstacle.

FT piece a few weeks ago https://www.ft.com/conte...-40af-8cd1-0202b639777e or https://archive.vn/106yS thinks it's ruled out of many indices because of "foreign private issuer" status.
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ANDREW FOSTER
Posted: 15 September 2023 08:29:59(UTC)
#4

Joined: 23/07/2019(UTC)
Posts: 8,101
Newbie;279218 wrote:
ANDREW FOSTER;279213 wrote:

I'm quite curious about how such a listing works with trackers...

I assume all the trackers have to buy.... does this create a spike in ARM share price?

Or do they gradually bring it in line over a few weeks?

Or some other mechanism..

ARM will not go in trackers in the usual way as it will not be in the index in the normal way.
This is due it listing as an ADS


Oh ok thx..

Will it not contribute to the Nasdaq headline index then?
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Wayne Hurdman
Posted: 15 September 2023 09:47:08(UTC)
#7

Joined: 31/01/2020(UTC)
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Tim D;279222 wrote:
Newbie;279218 wrote:
ARM will not go in trackers in the usual way as it will not be in the index in the normal way.
This is due it listing as an ADS


Can you expand please? Googling ARM ADS finds me nothing useful... not sure what an ADS is.


I think ADS is basically a Non US company listed on the US markets and cash held in a US bank, therefore purchasable by US investors. American Deposit Share or something like that.
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Hilda Ogden
Posted: 15 September 2023 09:53:41(UTC)
#9

Joined: 31/07/2023(UTC)
Posts: 883
Only 10% free float on the shares. Not one for me in any case.
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Newbie
Posted: 15 September 2023 12:44:39(UTC)
#6

Joined: 31/01/2012(UTC)
Posts: 3,816

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Tim D;279222 wrote:
Newbie;279218 wrote:
ARM will not go in trackers in the usual way as it will not be in the index in the normal way.
This is due it listing as an ADS


Can you expand please? Googling ARM ADS finds me nothing useful... not sure what an ADS is.

Interesting read at https://www.cnbc.com/202...will-not-be-buyers.html lists some other factors. The 10% free float seems like it might be a bit of an obstacle.

FT piece a few weeks ago https://www.ft.com/conte...-40af-8cd1-0202b639777e or https://archive.vn/106yS thinks it's ruled out of many indices because of "foreign private issuer" status.

Have a look at the following

https://www.investopedia...answers/06/adrvsads.asp

https://www.wallstreetmo...-shares/?v=79cba1185463

https://www.wallstreetmo...-shares/?v=79cba1185463

https://www.investopedia...used%20interchangeably.

https://www.astrazeneca....neca-adr-programme.html

https://www.clearygottli...n-the-united-states.pdf

The AstraZenaca is a good real life example.
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1 user thanked Newbie for this post.
Tim D on 15/09/2023(UTC)
Mostly Rational
Posted: 15 September 2023 17:54:42(UTC)
#10

Joined: 09/11/2021(UTC)
Posts: 311
The valuation seems entirely irrational. They're a profitable company, but rather than having growth prospects, their market share is likely to be eroded by RISC-V in the near future.

Well, I'm not one to complain if people are willing to pay over the odds for IPOs, considering that I have money riding on private equity discounts closing.
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