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Apple and Samsung to invest in SoftBank's Arm at IPO -Nikkei

Published 08/08/2023, 09:40 pm
Updated 09/08/2023, 01:02 am
© Reuters. FILE PHOTO: A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo
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TOKYO (Reuters) -Apple and Samsung Electronics (KS:005930) will invest in SoftBank Group-owned chip designer Arm at its initial public offering (IPO), expected in September, Japan's Nikkei newspaper reported on Tuesday.

Reuters reported in June that Arm was in talks with some ten companies - including Apple (NASDAQ:AAPL), Samsung and Intel (NASDAQ:INTC) - with the aim of bringing on one or more anchor investors in the offering.

Last month, Reuters and other media reported that Arm was in talks to bring in U.S. chip designer Nvidia as an anchor investor for the New York listing.

Apple, Samsung, Nvidia and Intel all plan to invest in Arm as soon as it is listed on the market, the Nikkei said. The SoftBank-owned firm will officially apply to the U.S. Securities and Exchange Commission for the listing later this month, the newspaper said.

Arm plans to sell the chipmakers stakes of "a few percent each", the newspaper said.

SoftBank declined to comment. Apple and Intel did not immediately respond to Reuters requests for comment, while Samsung and Nvidia declined to comment.

The long-awaited IPO is seen as a potential windfall for Softbank founder and CEO Masayoshi Son's sprawling tech conglomerate.

SoftBank has been targeting a listing for Arm since its deal to sell the chip designer to Nvidia collapsed last year due to objections from antitrust regulators.

© Reuters. FILE PHOTO: A smartphone with a displayed Arm Ltd logo is placed on a computer motherboard in this illustration taken March 6, 2023. REUTERS/Dado Ruvic/Illustration/File Photo

The planned U.S. listing could raise between $8 billion and $10 billion, sources told Reuters in April. At an earnings briefing on Tuesday, SoftBank's chief financial officer provided no details on a listing date or fundraising goal, but said preparations were going "very smoothly".

SoftBank posted a surprise loss on Tuesday but said it was dipping its toes back into new investments after its Vision Fund unit returned to the black for the first time in six quarters.

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