The co-founder of the company that founded Arm said London was “too small” for the semiconductor company’s IPO and said joint listing with New York was the “natural solution”.
Hermann Hauser, co-founder of Acorn computers, which later covered chip designer Arm, said there was “no liquidity for technology stocks in London.”
Speaking to BBC Radio 4’s Today program, Hauser said: “The problem with London is that it is really too small for an Arm-sized company to do it on its own.
Arm, which designs and licenses processor intellectual property used in many smartphones and computers around the world, is exploring public listing options after the collapse of its $ 40 billion merger with US technology giant Nvidia.
The parent company SoftBank said the United States is the preferred destination for the Cambridge-based company to re-enter the public market.
“Arm is a British company. It used to work well with double registration and I’m very much in favor of double listing again in London, “added Hauser.
An Arm spokesman declined to comment.
However, Russ Shaw, founder of Tech London Advocates and Global Tech Advocates, said the UK must fight to secure arms lists in the UK.
“It’s not just about image and reputation – this decision has important national, strategic significance in terms of the importance of the semiconductor industry worldwide,” Shaw said. UKTN.
Shaw added that Arm could encourage future tech unicorns to sail into the UK public market.
The Prime Minister lobbies for the IPO of the UK Arm
Earlier this week, UK Prime Minister Boris Johnson reportedly wrote to SoftBank executives in a last-ditch effort to persuade the Japanese conglomerate to list the Arm semiconductor designer in London instead of New York.
However, some analysts said it would be in Arm’s interest to choose the United States over the United Kingdom.
“This move smells of political opportunism,” said David Bicknell, chief analyst, thematic intelligence team, GlobalData. “The UK government has only its own interests in mind, not Arm’s future.
Bicknell added: “The [London Stock Exchange’s] The desire to convince Softbank that Arm should be listed in London is understandable, but the chances of that happening are slim. Softbank will not rethink its plans for New York – nor should it.
SoftBank acquired the Cambridge-based company for $ 32 billion (£ 23.4 billion) in 2016 in a move widely criticized as abandoning the “crown jewel” of British technology.
Provides extra headaches to Arm, the company’s Chinese company CEO Alan Wu was fired last week and refuses to leave.
If Arm avoids London, it will be a blow to the UK government, which is seeking to attract more technology businesses to register in London with the recent post-Brexit IPO reforms.
Last month, London-based BenevolentAI began trading on Euronext in Amsterdam.
In the UK technology IPOs raised a a record £ 6.6 billiontwice as many in 2020, including Deliveroo and Moonpig.