The Strategist

Chip developer Arm invites Intel to anchor investors ahead of $10 billion IPO

06/14/2023 - 10:13

American Intel is in discussions to invest as an anchor in the IPO of British chipmaker Arm.

According to sources, rival Intel and British chipmaker Arm Ltd., which is owned by Japan's SoftBank Group, are in discussions to invest up to $10 billion in an IPO in New York expected for late 2023.

They pointed out that the conversations are in their early stages and do not guarantee a conclusion, and that it is unclear how much money might be invested. If talks go well, Intel will be mentioned in Arm's IPO prospectus before going public.

It is becoming more typical for anchor investors to purchase between $100 million and $200 million worth of stock in IPOs tied to the semiconductor industry. Qualcomm supported listing of GlobalFoundries in 2021, while General Atlantic funded roughly $100 million in the IPO of Mobileye Global (a branch of Intel) in 2022.