The Arm IPO is here, but many ETFs will not be buyers
Publishing timestamp: 2023-09-14 11:50:42
Summary
The article discusses the difficulties that Arm Holdings Plc may face in acquiring broader ownership through Exchange Traded Funds (ETFs) due to its initial public offering (IPO). Arm is not eligible for inclusion in major ETFs due to its status as a British company and its float of less than 10%. The article also mentions potential ways for Arm to become eligible for inclusion in ETFs, such as exercising a greenshoe or selling additional shares after the lockup period expires. However, the article cautions against trying to play IPOs through ETFs and advises investors to understand the underlying holdings of any ETF they own.
Sentiment: NEUTRAL
Tickers: IPO, SPY, UNDEFINED, SMH,
Keywords: spdr s&p 500 etf trust, stock markets, vaneck semiconductor etf, arm holdings plc, wall street, exchange-traded funds, breaking news: markets, renaissance ipo etf, business news, markets, investment strategy,
Source: https://www.cnbc.com/2023/09/14/the-arm-ipo-is-here-but-many-etfs-will-not-be-buyers.html