(CTN News) – During Arm’s gearing up for its IPO on the New York Stock Exchange later this year, reports from Bloomberg and Financial Times suggest that it is courting Intel and NVIDIA in a bid to attract them both to serve as its anchor investors.
It has been shown that it is possible to drive the valuation of SoftBank-backed Arm, which is facing competition from many sides amid a slump in the semiconductor market, by attracting anchor investors.
Arm is currently in negotiations with potential investors regarding the valuation of the company.
A source familiar with the discussions says Nvidia, which failed to acquire Arm for $66 billion in 2022, is interested in a share price that reflects overall value between $35 billion and $40 billion, according to the Financial Times, citing a source familiar with the negotiations.
During the same time period, Arm’s aspirations are higher, closer to a valuation of $80 billion than current valuation.
The company is planning to list in New York later this year with the aim to generate up to $10 billion in revenue. There is no doubt that incorporating anchor investors, such as Intel and Nvidia, in an IPO can boost enthusiasm and drive momentum, particularly during times when there is a challenging market for new listings.
If the negotiations prove successful, Intel and Nvidia will be included in IPO prospectus before the company goes public, which will keep the stock’s value stable during the listing process.
The Financial Times reported on Thursday that Masayoshi Son, the founder of SoftBank, is personally involved in securing anchor investors for as he focuses on increasing revenue prior to its IPO, which is scheduled for May.
Reports say that Arm and Nvidia have contacted U.S. regulators to preemptively address any potential issues regarding what is expected to be a minority investment of a few hundred million dollars, according to FT.
It has been reported that the U.S. and European authorities had previously prevented Nvidia from taking over Arm over concerns that competitors would be restricted access to intellectual property.
Nvidia still wants to get a piece of Arm, but it seems that it is more willing to negotiate about the price since it gets only a share of the company.
The Financial Times and Bloomberg both reported that Arm, Intel and Nvidia have not commented on the talks as of yet.