Rumours have it that clients of Arm Holdings Ltd. are on board with investing in the microchip developer’s initial public offering (IPO). These include tech giants such as Apple, Nvidia, Alphabet and Advanced Micro Devices. Sources also named other prominent global businesses including Samsung Electronics, Cadence Design Systems and Synopsys.
Tech giants on board with investment in Arm IPO
This is stirring up a lot of interest in the intended IPO of the SoftBank-owned Arm, which is aiming for a valuation between $50bn and $55bn. Reports indicate this chip designer plans to price shares between $47 and $51 each when it launches on the market. Considering these figures, Arm will land an offering between roughly $5 and $5.4bn, making it the most valuable company listed since Rivian Automotive went public.
Analysts believe the demand for Arm shares may, in all likelihood, boost the valuation even more. It is however a decrease from the $64bn valuation at which SoftBank acquired a 25% Arm slice not already owned.
This is stirring up a lot of interest in the intended IPO of the SoftBank-owned Arm, which is aiming for a valuation between $50bn and $55bn. Reports indicate this chip designer plans to price shares between $47 and $51 each when it launches on the market. Considering these figures, Arm will land an offering between roughly $5 and $5.4bn, making it the most valuable company listed since Rivian Automotive went public.
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Analysts believe the demand for Arm shares may, in all likelihood, boost the valuation even more. It is however a decrease from the $64bn valuation at which SoftBank acquired a 25% Arm slice not already owned.
Strategic investors, such as Apple and Nvidia, indicated they will invest between $25m and $100m each in what is turning out to be the IPO of the year so far. The last indications were that SoftBank set aside 10% of Arm shares for the IPO.
Notably, Amazon, which showed previous interest in an Arm investment, resolved not to participate and requested anonymity. However the chips may fall, Arm’s resolve as an impartial participant in the industry is being put to the test.
Owning an interest share will not provide a seat on the board or the management of Arm. It could however forge valuable ties that safeguard the company against competitor takeovers in future.
