Leading technology companies have agreed to invest in the upcoming initial public offering (IPO) of chip designer Arm, reported Reuters, citing sources.

These include Arm’s customers such as NVIDIA, Apple, Advanced Micro Devices (AMD) and Alphabet, the sources said.

Semiconductor manufacturer Intel, Cadence Design Systems, Synopsys, and Samsung Electronics have also agreed to join the IPO as investors.

UK-based Arm is still in talks with other potential investor who could invest in the offering, they added.

Japanese investment major SoftBank Group Corp (SoftBank), the owner of Arm, is aiming for a valuation between $50bn (£39.5bn) and $55bn (£43.4bn).

The chip designer’s clients have decided to make investments in that valuation bracket, the sources said.

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According to the sources, Apple, Nvidia, and the other strategic investors have each committed to investing between $25m and $100m in the IPO.

One of the individuals stated that Amazon, which had previously held discussions to invest in the IPO, has opted not to take part.

Arm and SoftBank are offering 10% of shares through the IPO.

In a separate report, the news agency, citing sources, said that Arm is going to price each share between $47 and $51 for the offering.

At that price range, the IPO could fetch between $5bn to 5.4bn for Arm.

Requests for comment from Alphabet, Amazon, Apple, Arm, Cadence, Samsung and SoftBank did not elicit a response. Nvidia, Synopsys, Intel and AMD declined to comment, reported the news agency.

Last month, SoftBank acquired the 25% stake in Arm from its unit Vision Fund, valuing the semiconductor company at at $64bn.