Arm Ltd., a chip design company owned by the SoftBank Group Corp., has decided against a listing on the London Stock Exchange ahead of its initial public offering (IPO). Instead, the company will focus on a sole listing in New York later this year. Although the company has not ruled out the possibility of a secondary listing in London in the future, it is unlikely.
Arm is a highly regarded technology company in the UK, as its technology is present in most of the world's smartphones and is prevalent throughout the electronics industry. SoftBank's $32 billion acquisition of Arm in 2016 included promises to create more jobs in the UK and to maintain the headquarters in Cambridge, England. Despite efforts by UK Prime Minister Rishi Sunak to secure a listing on the London Stock Exchange, SoftBank founder Masayoshi Son has stated his preference for a listing in the US due to its deep investor base and attractive valuations.
The CEO of the London Stock Exchange Group, Julia Hoggett, had been advocating for an Arm listing in London, saying in an interview in July, "We should absolutely fight for anything that we think we have a compelling strategy to propose." However, turmoil in the UK government, which saw three prime ministers last year, may have contributed to the decision to focus on a listing in New York.
The company was aiming for a valuation of at least $60 billion last year, according to sources familiar with the matter. Although SoftBank declined to comment, the focus on a New York listing is expected to bring the company closer to its goal of achieving a high valuation.
