Arab Press

بالشعب و للشعب
Sunday, Mar 26, 2023

Arm opts for New York stock listing in blow to London

Arm opts for New York stock listing in blow to London

British microchip designer Arm says it will not pursue a London stock exchange listing this year.

The Cambridge-based firm designs the tech behind processors - commonly known as chips - that power devices from smartphones to game consoles.

Reports in January said Prime Minister Rishi Sunak had restarted talks with Arm's owner, Japanese investment giant SoftBank, about a possible UK listing.

Arm says it decided a sole US listing in 2023 was "the best path forward".

Chief executive Rene Haas said in a statement: "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 path forward for the company and its stakeholders."

He added the company will consider a UK listing "in due course".

Listing a firm on a stock exchange takes it from being a private to a public company, with investors able to buy and sell shares of a company's stock on specific exchanges.

Arm's decision not to pursue a listing on the London Stock Exchange this year has raised concerns that the UK market is not doing enough to attract tech company stock offerings, with US exchanges seen to offer higher profiles and valuations.

SoftBank Group Corp's founder and chief executive Masayoshi Son said last year he would probably look to the tech-heavy Nasdaq exchange for a potential Arm listing.

Arm had a dual listing on the London stock exchange and the Nasdaq for 18 years, before it was bought by SoftBank for $32bn (£26.7bn) in 2016.

Mr Haas said Arm is increasing its UK presence and headcount, including opening a new site in Bristol, and will keep its material intellectual property, headquarters and operations, in the UK.

"Arm is proud of its British heritage, and continues to work with the British Government," he said. "We will continue to invest and play a significant role in the British tech ecosystem."

A Government spokesperson said: "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."

They added the UK "continues to attract some of the most innovative and largest companies in the world" and acknowledged Arm's commitment to its UK presence with more jobs and investment.


'Crown jewel'


Sometimes referred to as the "crown jewel" of the UK's technology sector, Arm was founded in Cambridge, England, in 1990.

Its chip design instructions and technologies are used by manufacturers like the Taiwan Semiconductor Manufacturing Company and companies like Apple and Samsung to construct their own processors.

According to its latest quarterly filing, the company has shipped more than 250 billion Arm-based chips to date, and reported revenue up 28% on the same period last year.

Efforts by SoftBank to sell Arm to graphics card giant Nvidia collapsed last year as competition regulators in the UK, US and Europe probed whether the deal would push up chip prices and reduce choice.


'Significant blow'


Russ Shaw CBE, founder of Tech London Advocates and Global Tech Advocates, said Arm's statement offered "glimpses of hope" for its commitment to its British roots, but Arm and SoftBank's decision to opt for a sole US listing is "a significant blow to the UK tech sector".

Mr Shaw said it is also "disappointing news for the London Stock Exchange and the heritage and future of the UK semiconductor industry".

He is among UK tech leaders who have called on the government to publish its semiconductor strategy to support British companies operating in the chip industry and supply chain.

He added Arm's decision "must be upheld as a case study for the UK Government of how 'not to do it'" - citing the company's sale to SoftBank in 2016 as a factor determining its US-only listing.

"Nations like the US and China that recognise the strategic value of chip companies would not have allowed such decisions to be made - then or now - and the UK must now endeavour to proactively protect its semiconductor industry," said Mr Shaw.

Newsletter

Related Articles

Arab Press
Close
0:00
0:00
Powell: Silicon Valley Bank was an 'outlier'
Donald Trump arrested – Twitter goes wild with doctored pictures
Credit Suisse's Scandalous History Resulted in an Obvious Collapse - It's time for regulators who fail to do their job to be held accountable and serve as an example by being behind bars.
Paris Rioting vs Macron anti democratic law
'Sexual Fantasy' Assignment At US School Outrages Parents
Credit Suisse to borrow $54 billion from Swiss central bank
Russian Hackers Preparing New Cyber Assault Against Ukraine
If this was in Tehran, Moscow or Hong Kong
A brief banking situation report
We are witnessing widespread bank fails and the president just gave a 5 min speech then walked off camera.
Donald Trump's asked by Tucker Carlson question on if the U.S. should support regime change in Russia?.
Elon Musk Is Planning To Build A Town In Texas For His Employees
The Silicon Valley Bank’s collapse effect is spreading around the world, affecting startup companies across the globe
Market Chaos as USDC Loses Peg to USD after $3.3 Billion Reserves Held by Silicon Valley Bank Closed.
Banking regulators close SVB, the largest bank failure since the financial crisis
Silicon Valley Bank: Struggles Threaten Tech Startup Ecosystem"
The unelected UK Prime Minister Rishi Sunak, an immigrant himself, defends new controversial crackdown on illegal migration
Man’s penis amputated by mistake after he’s wrongly diagnosed with a tumour
In a major snub to Downing Street's Silicon Valley dreams, UK chip giant Arm has dealt a serious blow to the government's economic strategy by opting for a US listing
It's the question on everyone's lips: could a four-day workweek be the future of employment?
Spain officials quit over trains that were too wide for tunnels...
Corruption and Influence Buying Uncovered in International Mainstream Media: Investigation Reveals Growing Disinformation Mercenaries
European MP Clare Daly condemns US attack on Nord Stream
Tucker Carlson called Trump a 'demonic force'
US Joins 15 NATO Nations in Largest Space Data Collection Initiative in History
White House: No ETs over the United States
Saray Street in Hatay-Antakya before and after the earthquake
U.S. Jet Shoots Down Flying Object Over Canada
Nord Stream terror attack: David Sacks breaks down Sy Hersh's story
Being a Tiktoker might be expensive…
Miracle: El Salvador Search and Rescue teams, with the support of Turkish teams, rescued a woman and a child from the rubble 150 hours after the earthquake
SpaceX, the private space exploration company, made a significant breakthrough in their mission to reach space.
China's top tech firms, including Alibaba, Tencent, Baidu, NetEase, and JD.com, are developing their own versions of Open AI's AI-powered chatbot, ChatGPT
This shocking picture, showing how terrible is the results of the earthquake in Turkey
President Joe Biden delivered the 2023 State of the Union Address , in order to help Americans that missed the 2022 speech, do not have internet, and suffer from short memory.
The desk of King Carlos Alberto of Sardinia has many secret compartments
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
Shell reports highest profits in 115 years
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
×