By
Godfrey Benjamin
April 26th, 2024
British tech giant Arm has decided on a US listing alone in 2023 as “the best way forward for the company”.
SoftBank-owned semiconductor technology firm Arm recently announced its intent to pursue a US-only listing in 2023. On Friday, Arm ended speculation that it could conduct a primary or secondary listing in the UK.
In a statement, Arm chief executive officer Rene Haas said:
“After engagement with the British Government and the Financial Conduct Authority over several months, SoftBank and Arm have determined that pursuing a US-only listing of Arm in 2023 is the best way forward for the company and its stakeholders.”
The Arm decision to choose a US listing seemingly over the UK dashes the British government’s hopes. The UK government hoped the tech giant would return to the London Stock Exchange. However, Arm said it has not ruled out an eventual listing in the European nation. Without further details, the chip designer revealed plans to consider a subsequent UK IPO at the appropriate time.
British tech firm Arm said it would further expand in the UK by establishing a new facility in Bristol, England. The SoftBank-owned company also intends to maintain its headquarters, operations, and material intellectual property in Britain.
Britain Responds to Arm US Listing
A spokesperson for the UK government commented on Arm’s decision to list in America. Touching on the country’s ongoing efforts to create a welcoming hunting ground for leading companies across various sectors, the spokesperson explained:
“The UK is taking forward ambitious reforms to the rules governing its capital markets, building on our continued success as Europe’s leading hub for investment and the second largest globally. We continue to attract some of the most innovative and largest companies in the world – and note Arm’s commitment to expanding its presence in the UK, providing a boost to growth, jobs, and investment.”
British tech giant Arm had a London listing until Japanese financial conglomerate SoftBank acquired it in 2016 for $32 billion. At the time, the deal drew much criticism for the minimum level of scrutiny shown by the British government. Chief among levied complaints was the perception that the UK allowed its biggest tech export to be acquired by foreign investors.
As a leading tech success, Arm is the world’s largest supplier of semiconductor design elements used in smartphone manufacturing. The Cambridge-based semiconductor design and software company sells intellectual properties to tech mainstays, including Apple (NASDAQ: AAPL) and Qualcomm (NASDAQ: QCOM).
In other recent news, China is delaying Arm’s plan to scrap its embattled joint venture in the East Asian country. According to reports, Chinese officials declined to process the paperwork for Arm China’s transfer to a fresh Vision Fund entity.
However, regulators could still change their minds about the paperwork, which has been submitted since May last year. In any case, processing the document typically takes five to ten days to complete.