Silver Lake, Intel-backed Altera confidentially files for US IPO

Sept 15 (Reuters) – Chipmaker Altera said on Tuesday it has confidentially filed for a U.S. initial public offering, making the Silver Lake- and Intel-backed company the latest semiconductor firm seeking to tap investor appetite for AI-related businesses.

San Jose, California-based Altera makes programmable chips used in data centers, telecommunications networks, industrial equipment, AI applications and aerospace and defense systems.

Reuters had reported last week that the firm was preparing for an offering that could raise over $2 billion as early as this year, citing people familiar with the matter.

At that size, Altera’s offering would mark one of the largest semiconductor listings since chip designer Arm Holdings raised $5 billion in 2023 and peer Cerebras raised $5.55 billion in May.

South Korean chipmaker SK Hynix received over $26 billion in proceeds from its U.S. listing in July. Other AI-related firms such as data center developer SB Energy have also sought to tap investor demand through IPOs.

The U.S. IPO market is picking up steam after a brief summer lull as the traditionally busy fall season gets underway. High-profile listings, including SpaceX’s $75 billion offering, and the anticipated IPO of Anthropic have added momentum to deal pipelines.

Total proceeds have surpassed $145 billion this year, according to data from Renaissance Capital, a provider of IPO-focused research and ETFs.

Altera, which Intel bought for about $16.7 billion in 2015, became fully standalone last September after Silver Lake acquired a 51% stake for $4.46 billion in a deal that valued it at $8.75 billion. Intel retains a 49% stake.

The firm’s CEO, Raghib Hussain, told Reuters in a July interview that Altera was expecting growth in the mid-20% range this year.

Confidential filings allow companies to ⁠keep ​their finances under wraps until closer ​to the listing.

(Reporting by Utkarsh Shetti in Bengaluru; Editing by Sahal Muhammed)