Softbank's Arm is slated to go public next week in what is expected to be the biggest IPO of the year. Jim Cramer slapped his seal of approval on the name Tuesday morning and suggested demand for the chip designer will be off the charts.
What To Know: Arm is seeking a valuation of close to $54 billion in its planned IPO. The chip design firm expects to offer shares for $47 to $51 and raise approximately $5 billion in its initial offering, per a new regulatory filing with the SEC.
Softbank is expected to beneficially own approximately 90.6% of the company's outstanding shares following Arm's public debut.
Several companies expressed interest in purchasing up to an aggregate of $735 million in the IPO including Nvidia Corp NVDA, Advanced Micro Devices, Inc. AMD and Apple Inc AAPL.
"I think that people are going to want this because they've got a lot of big companies that are so-called anchor tenants," Cramer said Tuesday on CNBC's "Squawk On The Street."
He specifically highlighted the company's ties to Nvidia: Arm CEO Rene Haas used to work for Nvidia and the chip giant uses Arm products in its Grace Hopper superchip, Cramer said.
"I think that this company is fantastic," Cramer said.
"They're everywhere. I'm not worried as much about handset because they're AI. They are the CPU that is partnered with Nvidia, not AMD, not Intel — and Nvidia is king."
Arm is expected to make its public debut sometime around Sept. 13 in what will be one of the most anticipated listings of 2023.
Read Next: SoftBank's Arm Reveals IPO Ambitions With Close To $54 Billion Valuation
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