British chip designer Arm looks set to join the stock market in New York following the collapse of a £50billion takeover by American suitors.
In a bitter blow to the City of London, the company’s owner, Masayoshi Son, said he plans to float the Cambridge firm on the technology-heavy Nasdaq exchange.
Speaking last night after the takeover by Nvidia was abandoned, Son said: ‘I believe that Arm is about to enter its golden age. We think that the Nasdaq stock exchange in the US, which is at the centre of global high tech, would be most suitable for a listing.’
In a blow to the City, Arm’s owner, Masayoshi Son (pictured), said he plans to float the Cambridge firm on the technology-heavy Nasdaq exchange
The deal with Nvidia fell apart amid opposition from regulators around the globe over concerns that it could damage competition.
But Son, whose company, Japanese giant Softbank, bought Arm for £23billion in 2016, has come under mounting pressure to return it to the London stock market in a so-called initial public offering (IPO).
In a sign that Britain would roll out the red carpet to bring the company home, Business Secretary Kwasi Kwarteng told the Daily Mail: ‘Personally, I welcome a listing in London for Arm.’
And Arm co-founder Hermann Hauser said: ‘London is where Arm belongs, it’s a UK company. But whether London has a deep enough market to get an IPO of that size away is an issue.’
The sale of Arm Nvidia fell apart amid opposition from regulators around the globe over concerns that it could damage competition.
Others still believe there is time for Arm to be courted and urged London officials to get a move on. It is understood senior London Stock Exchange (LSE) figures have had discussions with Softbank bosses.
But executives at the Nasdaq in New York are notoriously pushy when it comes to securing companies to list on the exchange.
Russ Shaw, founder at Tech London Advocates, said: ‘The race is on with New York and the clock is ticking. If LSE officials have not held talks already then they should be on the next flight to Tokyo.’
If Arm made New York its home it would be a hammer blow for the UK. Last year Chancellor Rishi Sunak launched two reviews to make London more attractive to technology firms.
Tech executives and investors have urged the Government to speed up and deepen reforms to the UK listings regime to ensure fast-growing firms come to London, given concerns that momentum could slow this year.
Last week bosses of tech groups such as Checkout, Klarna and Graphcore were invited to Downing Street to meet City minister John Glen and officials to discuss the progress made in attracting founder-led tech companies.
Recent tech floats in London have had mixed results, with Deliveroo, Moonpig and Wise among those struggling.
Susannah Streeter, analyst at Hargreaves Lansdown, said: ‘If the UK’s largest home grown tech firms shuns London for New York it will be a major blow to London’s ambitions and will pile pressure on the Government to speed up reforms.
It may be seen as a vote of no confidence for London, where newly listed tech companies have had a distinctly rocky ride over the past year.’
Softbank blamed ‘significant regulatory challenges preventing the consummation of the transaction’ with Nvidia.
The demise of the deal also brought a management shake-up at Arm, with chief executive Simon Segars replaced by Rene Haas, head of the company’s intellectual property unit.
Analysts say the deal was doomed after the Federal Trade Commission in the US stepped in over Christmas.
It followed UK Digital and Culture Secretary Nadine Dorries ordering a probe into the takeover in November.