The Silicon Valley programmable chipmaker targets a mega-listing following its spin-out to private equity firm Silver Lake.
Programmable chip manufacturer Altera is preparing for an initial public offering (IPO) that could raise more than $2 billion as early as this year, according to sources familiar with the matter.
Silver Lake, which acquired a controlling stake in the San Jose-based firm from Intel last year, has tapped Barclays, Citi, JPMorgan, and Morgan Stanley to lead the underwriting team. Altera is expected to file confidentially for the listing in the coming weeks, though final details regarding timing and size remain subject to change.
The transaction would represent one of the largest semiconductor listings since Arm Holdings raised nearly $5 billion in 2023. It comes amidst a broader resurgence in US equity markets, with non-SPAC initial public offerings generating $137 billion through August, according to Dealogic data.
Altera produces field-programmable gate arrays (FPGAs) used across telecommunications, data centres, industrial robotics, aerospace, defense, and artificial intelligence. Intel originally acquired the company for $16.7 billion in 2015 before spinning it out last September, selling a 51% stake to Silver Lake and Abu Dhabi-backed MGX in a deal that valued Altera at $8.75 billion. Intel retains a 49% holding.
Under Chief Executive Raghib Hussain, Altera has been targeting expansion into AI and robotics applications ahead of its planned return to public trading.
For Intel, the listing coincides with an extensive operational restructuring under Chief Executive Lip-Bu Tan, who has pursued asset sales and capital raises—including an $8.9 billion US government investment and a $20 billion stock offering—to fund manufacturing expansion and balance sheet recovery.
Altera, Silver Lake, Barclays, JPMorgan, and Morgan Stanley declined to comment, while Citi and Intel did not immediately respond to requests for comment.
