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(Alliance News) - Arm Ltd has chosen to float only in New York this year, with the Cambridge, England-based computer-chip designer dealing another blow to London as a financial centre.
Arm said it will consider a "subsequent UK listing in due course". Arm was a London listing and FTSE 100 constituent prior to being acquired by Tokyo-based Softbank Group Corp for GBP24.3 billion in 2016.
"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 shareholders," Arm Chief Executive Rene Haas said in a statement.
"In addition, we are announcing new plans to further increase our UK presence with the opening of a new site in Bristol and continued headcount growth."
Haas said the company plans to maintain its headquarters in the UK.
"Arm is proud of its British heritage and continues to work with the British government," Haas added. "We will continue to invest and play a significant role in the British tech ecosystem. Arm also intends to consider a subsequent UK listing in due course."
Bloomberg on Friday reported global investment banks are pitching a sprawling valuation range between USD30 billion and USD70 billion.
The deal is a major blow for the London equity market, as well as the UK government.
The Financial Times in January reported UK Prime Minister Rishi Sunak had doubled down on his efforts to secure London a role in the planned IPO of Arm. Sunak met Arm CEO Haas in December, with SoftBank founder Masayoshi Son joining in a call via video, according to the FT.
Dublin-based building materials firm CRH PLC on Thursday said it plans to move its primary stock listing to the US from London. Plumbing and heating products supplier Ferguson PLC and miner BHP Group Ltd have made similar moves.
Paddy Power-owner Flutter Entertainment PLC in February said it is considering an additional US listing.
By Eric Cunha, Alliance News news editor
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