The shares of chip designer Arm Holdings (NASDAQ:ARM), which launched its initial public offering (IPO) yesterday, start trading today. The IPO gave ARM stock a valuation of over $50 billion, making it the largest U.S. IPO this year.

Here are seven other important things to know about Arm and ARM stock.

• The IPO was priced at $51 per share, towards the higher end of the $47-$51  range that it had previously anticipated.
• Arm received $4.87 billion from the transaction.
• The majority of Arm is owned by Japanese investment bank Softbank (OTCMKTS:SFTBY)
• The company’s fully diluted market capitalization is over $54 billion, CNBC reported.
• Several of Arm’s largest customers, including Apple (NASDAQ:AAPL) and Nvidia (NASDAQ:NVDA), have agreed to buy significant amounts of ARM stock.
• Arm expects its revenue to surge 11% in 2023 and about 25% in 2024.
• The company’s net income, however, sank 22% last year.

ARM Stock: Other Important Points

Based on a market capitalization of $54 billion, ARM would have a price-to-earnings multiple of 104. But with the chip designer’s top line poised to surge going forward, that multiple is likely to drop sharply.

Also noteworthy is that Arm expects to benefit from the strong demand for chips for use in AI and data centers.

Arm believes that 70% of the world’s chips are based on its designs.

Softbank acquired Arm in exchange for $32 billion seven years ago. Nvidia tried to purchase Arm for $66 billion, but regulators vetoed the deal.

Multiple market participants have cited Arm’s successful IPO as a sign that the IPO market has been rejuvenated. As a result, they expect more sizeable companies to launch IPOs in the quarters and months ahead.

On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.