The chip company Arm says it’s hoping to raise about $4.8 billion when it goes public later this year. Arm’s IPO would be the largest since the electric vehicle company Rivian went public in 2021. The thing is, the IPO market has been slow in the time since. But Arm’s IPO could inspire other companies to go public, too.

Ever since early last year, companies have found plenty of reasons to avoid going public.

Russia’s invasion of Ukraine, rising interest rates, a possible recession — all that uncertainty hasn’t necessarily gone away, but investors have had time to absorb it.

“It’s not as much of a shock as it was last year,” said Avery Spear with Renaissance Capital. As a result, Spear said the IPO market has started to thaw.

“We have seen more 100 million-dollar-plus IPOs this year than last,” she said. “And the year’s large issuers have done quite well.”

Arm is hoping to raise billions with its IPO, which means it’ll have to attract a lot of investors.

What if the company’s stock rises after it starts trading?

“That gives investors some confidence that there’s investor demand, that the company’s OK,” said Steve Kaplan with the University of Chicago. “And it potentially leads to more IPOs.”

But, if the IPO goes poorly, other companies might decide to stay private.