Reports suggest that microchip specialist Imagination Technologies, a chip designer with clients including tech giant Apple, may be preparing to go public in New York. This news comes shortly after Arm’s highly successful initial public offering (IPO), which garnered a $54 billion valuation. Imagination operates similarly to Arm, licensing its semiconductor intellectual property to other companies.
Imagination, headquartered in the UK, confidentially registered its intention to go public in New York, as reported by the Sunday Telegraph. This move would mark Imagination’s reentry into public markets after being delisted from the London Stock Exchange in 2017 through a $742 million take-private deal orchestrated by investment group Canyon Bridge, backed by China. Imagination has not yet responded to requests for comment.
The surge of investor interest in artificial intelligence (AI) this year has resulted in significant gains for chip companies like Nvidia. Arm itself benefited from this trend, although its main focus lies in mobile processors. If it were to proceed with an IPO, Imagination might present a more direct opportunity for investors to capitalize on the AI sector. The company emphasizes its four key areas, including neural network accelerators that power AI applications for self-driving cars and cloud computing.
According to recent UK filings, Imagination reported a year-over-year increase in annual revenue, reaching £120 million ($149 million) in 2022 compared to £111 million in 2021. The company is optimistic about certain markets, particularly the automotive sector, which it deems more resilient than the overall semiconductor market.
