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British chip designer Arm Holdings, following its public debut on the Nasdaq last Thursday, is now under consideration for inclusion in popular indexes such as the Nasdaq 100. However, analysts suggest that its addition to the is unlikely due to the company’s U.K.-based status.

Shares of Arm closed up 24.7% in their Nasdaq debut on Thursday, giving the company a market value of $65 billion. The shares slightly declined by 0.7% in Friday morning trade. Inclusion in widely-followed indexes and ETFs often propels stocks further as fund managers and investors who benchmark to indexes are encouraged to hold the shares if they are included in widely-used gauges.

Analysts believe Arm is a likely candidate to be added to the (.NDX), which measures the performance of 100 of the largest Nasdaq-listed non-financial companies. “The Nasdaq 100 is the most likely widely followed index for the company to get added into,” said Todd Rosenbluth, Head of Research at VettaFi.

The smallest company currently in the Nasdaq 100 is Lucid Group (NASDAQ:NASDAQ:), with a market capitalisation of about $13 billion, thus making Arm a qualified candidate based on its market cap, according to Todd Sohn, technical strategist at Strategas.

However, Arm’s inclusion in the Nasdaq 100 may take some time. According to a methodology document referred by a Nasdaq spokeswoman, a security must have traded for at least three full calendar months, not including the month of initial listing, to be eligible for the index.

In contrast, Arm’s inclusion in the S&P 500, a standard benchmark for the U.S. stock market, appears less likely due to its U.K.-based multinational status. Jeffrey DeMaso, editor at Vanguard Investment Adviser, and other analysts expressed doubts that an index designed to capture the U.S. economy would include a U.K.-based multinational like Arm.

Arm’s initial public offering (IPO) marked the largest of this year, with shares surging approximately 25% on its first day of trading. The IPO also resulted in a significant payout for advisors, with $84m (£68m) worth of fees distributed, marking the largest payout in nearly five years. Of the total payout, $51m was allocated to accounting fees, with auditor Deloitte receiving a significant portion, while $17m was dedicated to legal fees.

The successful debut of Arm has ignited hopes for a revival in the global IPO market which has been largely dormant over the past 18 months due to rising interest rates and rampant inflation.

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