SoftBank Group Corp. has lined up some of Arm Ltd.’s biggest customers as strategic investors for the chip company’s initial public offering, including Apple Inc., Nvidia Corp., Intel Corp. and Samsung Electronics Co., according to people familiar with the situation.
(Bloomberg) — SoftBank Group Corp. has lined up some of Arm Ltd.’s biggest customers as strategic investors for the chip company’s initial public offering, including Apple Inc., Nvidia Corp., Intel Corp. and Samsung Electronics Co., according to people familiar with the situation.
The investors also include Advanced Micro Devices Inc., Cadence Design Systems Inc., Alphabet Inc.’s Google, Synopsys Inc., among others, said the people, who asked not to identified because the details haven’t been announced. SoftBank has been in discussions with Arm customers and partners for months, but the plans are just being finalized now. Still, details could change as the company gets closer to the IPO, which is expected to have its investor roadshow underway by next week.
The investors will put in amounts ranging from $25 million to $100 million, according to the people.
The show of support from some of the tech industry’s biggest names will help bolster the offering, which is expected to raise $5 billion to $7 billion. SoftBank, which acquired Arm in 2016, was previously aiming to value the chip business at $60 billion to $70 billion, but the figure could be more in the $50 billion to $60 billion range, Bloomberg has reported.
Arm is considering pricing its shares on Sept. 13, and the stock will start trading the next day, Bloomberg reported earlier this week. The roadshow to promote the offering is expected to come after the Labor Day holiday on Monday.
Representatives from Arm, Google, Nvidia and Synopsys declined to comment. AMD, Apple, Cadence, Intel and Samsung didn’t immediately respond to requests for comment.
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