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

FILE PHOTO: Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023.

FILE PHOTO: Semiconductor chips are seen on a printed circuit board in this illustration picture taken February 17, 2023. (REUTERS/Florence Lo/Illustration/File Photo)


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Sept 15 — 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)

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