Tech giant Apple’s chip designer, Imagination Technologies, is reportedly registering for an initial public offering (IPO) in New York, following the success of Arm’s recent IPO. Imagination, a UK-based company, specializes in microchip design and licenses its semiconductor intellectual property to other businesses. With a business model similar to Arm’s, which achieved a staggering $54 billion valuation with its IPO, Imagination’s move to go public is expected to invigorate capital markets and potentially pave the way for more listings.
According to the UK’s Sunday Telegraph, Imagination has confidentially registered for an IPO in New York. This marks a return to the public market for Imagination after it was delisted from the London Stock Exchange in 2017 through a $742 million take-private deal led by China-backed investment group Canyon Bridge. Imagination has yet to respond to requests for comment.
The investor frenzy surrounding artificial intelligence (AI) this year has significantly benefited chip companies like Nvidia. It has also propelled Arm’s IPO forward, even though Arm primarily focuses on mobile processors. Should Imagination go public, it could present a more direct opportunity to invest in AI. The company lists neural network accelerators as one of its key areas, which power AI applications in self-driving cars and cloud computing.
Recent UK filings reveal that Imagination achieved annual revenue of £120 million ($149 million) in 2022, a growth from £111 million the previous year. The company stated that some of its target markets, particularly the automotive sector, are more resilient than the overall semiconductor market.
In conclusion, Imagination Technologies is mirroring Arm’s success by preparing for a potential IPO in New York. As a chip designer with ties to tech giant Apple and a focus on AI applications, Imagination’s listing is highly anticipated in the tech industry.