Arm approaches TSMC, Apple, Google, Microsoft and Samsung for anchor investments prior to IPO
Arm could end up securing several other major anchor investors besides Intel before the IPO, according to industry sources cited by Reuters. Despite turbulent conditions that are signaling trouble for the U.S. stock market, Arm’s parent company SoftBank still hopes to raise US$8 - 10 billion during the NYSE IPO scheduled for Q3 2023.
Apparently, SoftBank first approached Intel for a sizable anchor investment, given Team Blue’s recent agreement that allows Arm to fabricate upcoming core IPs on advanced Angstrom nodes through the IFS program. To quickly dismiss concerns that Intel could acquire a controlling stake in Arm, SoftBank seemingly opened negotiations with other companies like TSMC, Google, Microsoft, Samsung and Apple.
All the anchor investment negotiations are preliminary and any decision may only be made public closer to the IPO by August. One of the insider sources specifies that none of the anchor investment deals come with board seat or control.
Back in April, when SoftBank was finalizing the IPO listing procedure, Arm’s valuation was ranging between US$30 and 70 billion. By securing anchor investments from as many industry giants as possible, SoftBank hopes to bolster the Arm valuation closer to the 70 billion mark, but that could prove a challenging task as the U.S. government continues to increase interest rates.