Masayoshi Son‘s SoftBank Group Corp.’s acquisition of British semiconductor technology company Arm has put an end to rumors about a primary or secondary listing in the UK. The business instead intends to explore a US-only offering this year. It appears wise to pursue a US-only listing given that the US is a hub for technological firms and a significant source of revenue for Arm.
Son is a billionaire with a net worth of $9.73 billion, according to Bloomberg, and the founder of SoftBank, a business with headquarters in Tokyo and investments in Alibaba and Yahoo Japan among other technological firms. Son created SoftBank, a Japanese mobile phone and investment firm. SoftBank reported revenue of 6.2 trillion yen ($55.4 billion) for the year ending March 31, 2022.
The biggest manufacturer of semiconductor design components used in smartphones decided to take this route after months of collaboration with the British government and the Financial Conduct Authority. The best course of action for the company and its stakeholders, in the opinion of CEO Rene Haas, is to pursue a US-only listing. This choice will make it possible for Arm, which is well-known for supplying intellectual property to companies like Apple Inc. and Qualcomm Inc., to expand its market share in the US.FCA
Arm has announced that it intends to evaluate a subsequent IPO there in due course without going into greater detail, even if it hasn’t fully ruled out the possibility of a London listing in the future.
The government has been working to get more high-growth IT companies to list in the UK, so this news is disappointing for that nation. Notwithstanding this, Arm has reaffirmed its dedication to the UK by announcing plans to establish a new plant in Bristol, England. The business intends to preserve its operations, material intellectual property, and headquarters in Britain while growing even more there.
This is fantastic news for the UK since it shows that the company’s objectives for growth and expansion there have not changed as a result of its choice to pursue a US-only listing. Arm Ltd. made the strategic choice to pursue a US-only listing this year in order to access the lucrative American market while keeping a significant presence in the UK. Although the UK government may be disappointed by this announcement, Arm’s commitment to growing in the UK is encouraging for the nation’s tech sector.
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