Arm, the chip designer owned by SoftBank Group Corp, is currently engaged in discussions with significant customers and end users as it prepares for its highly anticipated initial public offering (IPO). Sources reveal that the company has reached out to several major players in the industry, including Intel, Alphabet, Apple, Microsoft, TSMC, and Samsung Electronics, to explore potential anchor investments for the IPO.
According to insiders familiar with the matter, the negotiations are still in the early stages, and a final decision regarding anchor investments is expected to be made in August. It is important to note that any investment made through the IPO would not grant board membership or control over Arm’s operations to the investors.
The primary objective of Arm’s IPO is to raise a substantial amount of capital, and the company aims to achieve this by selling its shares on the Nasdaq stock exchange later this year. Reports suggest that Arm is targeting a fundraising goal of between $8 billion and $10 billion through this IPO, which would undoubtedly attract significant attention from investors and industry observers alike.
Arm’s chip designs are widely used by prominent semiconductor companies such as Intel, AMD, Nvidia, and Qualcomm, among others. However, the prospect of an IPO investment has raised concerns about the potential impact on Arm’s business relationships. With various industry giants among the companies Arm has approached, the response from these key players could have far-reaching implications for the chip designer’s future.
In preparation for its IPO, Arm filed confidentially with regulators back in April, marking a crucial step towards making this one of the most notable IPOs of the year. The confidential filing allowed Arm to work closely with regulatory bodies to ensure compliance with necessary procedures and regulations, while also keeping the specifics of the IPO under wraps until a later stage.