The board of Taiwan Semiconductor Manufacturing Co. (TSM) has approved an investment of up to $100 million in the Initial Public Offering (IPO) of UK-based chip designer Arm.
TSMC’s board held a special meeting, where they passed a resolution to buy a stake in Arm Holdings Plc, “not exceeding US$100 million based on Arm’s share price at IPO.”1
Arm’s IPO is set to be the largest this year and raise anywhere from $4.49 billion to $4.87 billion, valuing the firm at $52 billion. TSMC is not the only tech company eager to get Arm shares. According to its IPO filing, Arm has seen interest from Advanced Micro Devices (AMD), Apple (AAPL), Google (GOOG) (GOOGL), Intel (INTC), Nvidia (NVDA), and Samsung among others, that could total about $735 million together.
Bloomberg reported that Arm is closing its order book a day early on Tuesday, Sept. 12, at 10 times oversubscribed, with its owner Softbank set to reap the reward of its $32 billion purchase in 2016.2
In a separate resolution, TSMC’s board approved a 10% equity investment in Intel-owned IMS Nanofabrication Global, for an amount no higher than $432.8 million.
TSMC shares closed 1.5% higher on Tuesday.
Source : Investopedia