Arm, the British microchip designing giant, has filed to sell its shares in the US, which could potentially become the biggest stock market listing this year. The Cambridge-based firm aims to raise up to $10bn through the listing, a blow to the UK as the company said in March that it did not plan to list its shares in London.
Softbank, the Japanese conglomerate that bought Arm in 2016 in a deal worth £23.4bn, said it had “confidentially submitted a draft registration statement” for the listing to the US Securities and Exchange Commission. Softbank was seeking to raise between $8bn and $10bn through the listing this year on the technology-heavy Nasdaq platform in New York.
Arm designs the technology behind processors, commonly known as chips, that power devices from smartphones to game consoles. Its designs are used by chip manufacturers like the Taiwan Semiconductor Manufacturing Company and household brands like Apple and Samsung to build their own processors. The firm was founded in Cambridge, England, in 1990 and was listed in London and New York at the time of the Softbank purchase.
Arm’s decision to not list shares in London has raised concerns that the UK market is not doing enough to attract tech company stock offerings, with US exchanges offering higher profiles and valuations.
Despite difficult conditions in the global financial markets, the registration shows that Softbank is pushing ahead with the multi-billion dollar sale. The listing is “subject to market and other conditions and the completion of the SEC’s review process,” Softbank said.
A successful stock market listing of Arm would be welcome news for its owner Softbank, whose Vision Funds have faced losses due to declining valuations of many of its investments in technology start-ups.
The chip-making industry has faced slowing demand due to an acute shortage of semiconductors during the pandemic. Last week, US chipmaking giant Intel reported its largest quarterly loss in the company’s history, while South Korean rival Samsung posted a more than 90% fall in its profits.
Arm Holdings, the UK-based semiconductor company owned by Softbank, is seeking to raise up to $10bn by listing its shares on the Nasdaq stock exchange in New York, in what would be the biggest stock market listing this year. Softbank has “confidentially submitted a draft registration statement” for the listing to the US Securities and Exchange Commission, according to a company statement.
The move comes after Arm announced in March that it would not list its shares in London, raising concerns over the UK’s ability to attract tech company listings. Arm’s designs power devices such as smartphones and game consoles, and are used by manufacturers such as Apple and Samsung.
Source: techgenez.com