NVIDIA shares: ARM wants chipmaker as ‘anchor investor’ ahead of IPO
Following last year's abortive attempt by NVIDIA to buy rival chipmaker ARM, ARM now wants to bring NVIDIA in as an anchor investor.
According to the FT, it aims to pump prime interest in ARM's spin-off later this year from parent Softbank. Softbank wants to list ARM in an IPO in New York, possibly as early as September. NVIDIA, which is the world's most valuable semiconductor company, was forced last year to abandon its planned $66 billion acquisition of ARM after the deal was challenged by regulators.
(Video Transcript)
NVIDIA
Now, following last year's abortive attempt by a video to buy rival chipmaker Arm Holdings, ARM is now wanting to bring NVIDIA in as an anchor investor. Now, this is according to a report in the Financial Times this morning, which says the tactic is to pump prime interest in arms spin-offs later this year from parent company SoftBank.
Softbank
Japanese business, SoftBank wants to list ARM in an initial public offering (IPO) in New York, possibly as early as September. The company, which is one of the world's most valuable semiconductor companies, was forced last year to abandon its planned $66 billion acquisition of ARM after the deal was challenged by regulators. Now, SoftBank bought ARM for $32 billion back in 2016 from its listing here in London.
ARM spinoff
SoftBank's valuation aims to double on the sale of the business in September. Many private tech companies and their advisers are watching closely to see if the spinoff can succeed in launching that IPO this year. After a year-long slump in new listings. It might have been a slump in listings, but we've seen record highs in video recently.
The biggest, most recent rise to records has really been all about the fact that Nvidia is leading the charge and leading the globe in artificial intelligence. It supplies chips for this business, and it is doing great business on the upside.
The stock will open all sessions on the platform this morning at $424. 18 at 9:00 today. That's when the all-session stock starts getting underway. But the real question is, I think, whether or not Nvidia gets its goal of becoming a major investor before the listing, and if it does, how would it take part in the IPO later this year?
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
