Nvidia Considering Anchor Investor Role For Arm - Reports

According to the Financial Times, a person familiar with the discussions said Nvidia wanted to come in at a share price that would boost Arm's total value at $35bn to $40bn, though Arm wants to be closer to $80bn.

It is already one of several existing partners which Arm is hoping will invest at its IPO stage, planned for September this year.

Other prospective partners include Intel, who are still negotiating with the chip maker over its valuation. 

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One or more anchor investors ahead of its New York listing would help support Arm's stock as its parent company, SoftBank, which bought Arm for £24bn ($32bn) in 2016, sells down its stake.

However, another source said the talks had not been concluded and may not even lead to an investment.

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This comes after Nvidia was forced to abandon its plan to take over Arm last year, after regulators challenged the deal, worth $66bn (£58bn).

Competition authorities in the US and Europe said the deal might restrict rivals' access to Arm's intellectual property, which can be found in most smartphones and a growing portion of the automotive market.

Despite being a Cambridge-based company, Arm decided against listing on its home turf earlier this year, which at the time, raised concerns about the attractiveness of the UK market for tech companies to grow.

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Global listing volumes dropped in 2022 as investors were weary of falling stock prices, increasing market volatility and the uncertain economic outlook. However, activity has begun to pick up in recent weeks.

Many are watching closely to see if Arm can succeed in launching its IPO this year. By securing the support of a few anchor investors ahead of its listing, Arm can ensure demand while reassuring potential investors.

In May this year, Nvidia joined the $1trn club as investors piled into the company, pushing its market value up, which has tripled in less than a year.

 

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