Arm IPO: Intel in talks to be anchor investor in SoftBank Group’s issue — report
Arm IPO: US tech major Intel is in talks with SoftBank Group Corp’s Arm to be an anchor investor in its upcoming IPO (initial public offering), reported Reuters attributing to an anonymous source. Arm aims to raise $8 billion to $10 billion from its public offer proposed for listing on Nasdaq later this year.
As per the media reports, Soft Bank aims to list its Arm segment at Wall Street any time this year, depending upon the market condition. The company has selected four investment banks for Arms IPO and those four banks are Goldman Sachs, JPMOrgan Chase, Barclays and Mizuho Financial Group.
Disappointment for London exchange
Arms IPO listing in the US stock market can be a disappointing event for the UK and other European stock market as there was buzz about the Soft Bank’s Arm IPO listing at the London exchange. Arms IPO listing at Wall Street may hit London stock exchange’s bid to appear as one of the most appealing destination for the high value IPOs i the global markets.
In the year 2020, Soft Bank had announced that it would be selling Arm to an American chipmaker company NVIDIA. However, the $80 billion deal fell in February 2022.
According to various media reports quoting various experts, Arm IPO may not be as profitable as the NVIDIA sale deal amid rising interest rates and changing monetary policy across globe.
Soft Bank Group Corp’s Arm is seeking an initial offer because private investors in the SoftBank-led Vision Fund – who govern 25 per cent paid up capital of ARM – will be able to cash in through this public issue.
Arm’s designs are used in the manufacturing of chips made by most of the world’s major semiconductor companies, including Intel, AMD, Nvidia and Qualcomm. It was not immediately clear what impact any IPO investment by one or more of those companies would have on Arm’s commercial relationships.
The chipmaker had filed with regulators confidentially for a US stock market listing in April, setting the stage for this year’s largest IPO.
(With inputs from Reuters)
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Updated: 13 Jun 2023, 08:54 AM IST
