
A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023.
13:35 JST, September 2, 2023
NEW YORK, Sept 1 (Reuters) – Customers of Arm Holdings Ltd including Apple Inc AAPL.O, Nvidia Corp NVDA.O, Alphabet Inc GOOGL.O and Advanced Micro Devices Inc AMD.O have agreed to invest in the chip designer’s initial public offering, according to people familiar with the matter.
Intel Corp INTC.O, Samsung Electronics Co Ltd 005930.KS, Cadence Design Systems Inc CDNS.O and Synopsys Inc SNPS.O have also agreed to participate as investors in the offering, the sources added. The talks are ongoing and some other potential investors are also in discussions to invest in the IPO, the sources added.
SoftBank Group Corp 9984.T, which owns Britain-based Arm, is targeting a valuation between $50 billion and $55 billion, Reuters reported earlier on Friday. Arm’s clients have agreed to invest in that valuation range, the sources said.
While it is possible that demand for Arm’s shares will lead to a higher valuation by the time the IPO prices, the move represents a climb-down from the $64 billion valuation at which SoftBank acquired the 25% stake in the company it did not already own from its $100 billion Vision Fund last month.
Apple, Nvidia and the other strategic investors have agreed to invest between $25 million and $100 million each in the blockbuster IPO, the sources said. Arm and SoftBank have set aside 10% of the shares to be sold in the IPO for its clients, Reuters has previously reported.
Amazon.com Inc AMZN.O, which had previously held talks to invest in the IPO, has decided not to participate, one of the sources said, requesting anonymity as the discussions are confidential.
A scramble among Arm’s clients, comprising the world’s biggest technology companies, to snap up shares in the IPO is testing the semiconductor designer’s adherence to not picking sides in the chip industry.
The interest is fueled by a desire by companies to expand their commercial relationship with Arm and make sure rivals do not gain an edge, Reuters has previously reported.
While an investment in the IPO would not come with a seat on Arm’s board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later.
Arm and SoftBank did not immediately respond to requests for comment.
AMD, Intel, Synopsys and Nvidia declined to comment. Alphabet, Amazon, Apple, Samsung and Cadence did not immediately respond to requests for comment. The Wall Street Journal reported on Arm’s valuation target earlier on Friday.
"News Services" POPULAR ARTICLE
-
UPDATE2: Four Japanese Self-Defense Forces members injured in explosion at U.S. Kadena Air Base in Japan’s Okinawa
-
Shooter Kills At Least Nine in Attack on Austrian School, Mayor Says
-
Liberal Lee Jae-Myung Projected to Win South Korea Election Overshadowed by Martial Law Crisis
-
Japan’s Nikkei Stock Average Ends Lower on Worries about US-China Trade Tension, Stronger Yen (UPDATE 1)
-
North Korea Fired Multiple-launch Rockets from Near Pyongyang, South Korea Says
JN ACCESS RANKING
-
Japanese Researchers Develop ‘Transparent Paper’ as Alternative to Plastics; New Material Is Biodegradable, Can Be Produced with Low Carbon Emissions
-
Japan’s Cooperation in Alaska LNG Development Project Emerges in Japan-U.S. Tariff Negotiations; But Industry Concerns Exist
-
Trump: Nippon Steel Will Part Own U.S. Steel, U.S. to Be in Control; Share Distribution, Other Details Remain Unclear
-
Average Retail Rice Price Up for Second Consecutive Week; More Than Double Same Period Last Year
-
Japan’s Maglev Shinkansen’s Partially Completed Station Unveiled; Station Will Be Only Underground Stop Between Shinagawa, Nagoya