NEW YORK/SAN FRANCISCO : A scramble among Arm Holdings Ltd's clients, comprising the world's biggest technology companies, to snap up shares in its initial public offering is testing the semiconductor designer's adherence to not picking sides in the chip industry.
These companies' interest is fueled by a desire to expand their commercial relationship with Arm, and make sure that their rivals do not gain an edge, according to people familiar with the discussions. While an IPO investment would not come with a seat on Arm's board or ability to dictate strategy, it could strengthen ties with each participating company and make it harder for a competitor to acquire Arm later, according to the sources.
Arm and its owner SoftBank Group have set aside 10 per cent of the shares to be sold in the IPO for its clients, the sources said. They have pushed back against demands for higher allocations, arguing this would weigh on the liquidity of Arm's stock, given that shares totaling a stake of only 10 per cent in Arm will be sold in the IPO, the sources added.
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