Arm plans to bring in Nvidia as a lead investor just months before the chip designer’s New York listing.
IPO: Chip designer Arm set to float in New York later this year
Arm is in talks to bring in Nvidia as a lead investor just months before the chip designer’s New York listing.
Nvidia, the world’s most valuable semiconductor company, abandoned its planned £50 billion acquisition of Arm last year after regulators challenged the deal.
The Silicon Valley chipmaker is one of several Arm partners, including Intel, which the UK-based firm hopes will take a long-term stake.
Potential investors are still negotiating with Arm over its valuation. Nvidia wants to get in at a price that would put Arm’s value at £27bn to £31bn, while Arm wants it to be closer to £62bn.
The aim of attracting big anchor investors would be to back the shares as SoftBank, which bought Arm for £24bn in 2016, sells its stake.
Private tech firms and their advisers are watching to see if the float can succeed after a year-long drop in new listings.