Wall Street IPO for Arm as UK government implodes
SoftBank, the Japanese parent of superchip architect Arm, has reportedly abandoned plans for a dual listing of the Cambridge business in the US and UK.
Sources cite the meltdown of Boris Johnson’s leadership, the loss of key trade figures and Tory infighting as a new PM is sought.
Some financial sources internationally fear that the signals the Arm decision will send out could lose further investment for the UK.
SoftBank boss Masayoshi Son always preferred New York where he believes the company will raise considerably more money from an Arm IPO on the traditionally cash rich NASDAQ technology market.
Johnson had apparently pushed trade envoys hard to offer financial incentives for Arm to be handed a dual listing in London and New York but that apparently went out of the window with his resignation and those of other key figures involved in trying to woo SoftBank to sanction a float on both sides of the Atlantic.
Slightly ironic, one may think, after the UK government fought so hard to prevent US tech giant NVIDIA from acquiring Arm for billions. Business Weekly understands that while the proposed acquisition price was circulated at $40bn it would have been closer to $80-100 bn with add-on investments, by NVIDIA, principally for the Cambridge data and wider tech sector.
Business Weekly further understands that Arm will stay in Cambridge regardless of the Wall Street IPO.
Senior executives within Arm and SoftBank, led by Arm’s new CEO Rene Haas, are already focusing on expanding the Cambridge company’s global reach in lucrative areas of compute via groundbreaking technology advances.
The FT has reported that Boris Johnson had personally lobbied Son in a bid to clinch some kind of London listing for Arm.
It adds poignantly: “As Johnson’s government collapsed earlier this month, investment minister Lord Gerry Grimstone and digital minister Chris Philp resigned. They had both played leading roles in talks with the Japanese tech investor.”