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UK Chip Giant Arm Files for US Share Listing

MAY 1 2023·Updated MAY 2 2023

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Image credit: reuters

The Facts

British microchip firm Arm has officially filed to sell its shares in the US, having stated in March this year that it did not plan to list its shares in London.
BBC News
The press release, published on Saturday, stated that Softbank-owned Arm had recently confidentially submitted a draft F-1 form to the US Securities and Exchange Commission (SEC) to hold an initial public offering later this year.
Engadget
Arm has been called the "crown jewel" of the UK's technology sector, and the desire for the company's share listing to stay in the UK fueled reports in January this year that Prime Minister Rishi Sunak himself had been in talks with Softbank.
Times Now
Arm will reportedly be seeking to raise between $8B and $10B on Nasdaq, although Arm said it has not determined the prince range or size of the offering.
Reuters
Softbank has remained insistent on pushing forward with the IPO, despite such US listings down approximately 22% at $2.35B in the year-to-date, according to Dealogic.
The Economic Times
Softbank had previously agreed to sell Arm to chip designer Nvidia for $40B, with the deal collapsing due to antitrust regulator concerns.
Baystreet.ca

Sources Split

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CRIT

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ESTAB

The Spin

Narrative A

The decision to bail on London's market in favor of the US is a major blow to the UK when considering that Arm's initial public offering will be one of the largest of 2023. The decision is part of a wider move by British-based companies to ditch the UK for overseas markets — this is not a good sign for future trends.

CityAM

Narrative B

The decision by Arm is a sign that the global initial public offering market is beginning to recover. While the US remains concerned over a recession, decisions by major companies to attract major public funding worldwide — especially in Asia — is a good sign for the global economy overall.