UK government still trying to get Arm to IPO in London
- Reference: 1655222408
- News link: https://www.theregister.co.uk/2022/06/14/uk_government_arm_ipo_hopes/
- Source link:
At stake is whether Arm moves its headquarters to the US, potentially leading to the further loss of UK jobs.
Speaking to the [1]Financial Times , UK minister for Technology and the Digital Economy Chris Philp said the government was still "working closely with" Arm management on the IPO process, despite its parent SoftBank having previously indicated that it was planning to list Arm on the Nasdaq stock exchange in New York.
[2]
Philp was speaking at the launch of the [3]UK's new Digital Strategy , which is intended to promote the four-nation state as a good place to start and run a digital technology business, and aims to boost the economy by pushing measures to improve companies' access to finance and enhancing the nation's digital skills and talent.
[4]
[5]
The minister noted that many companies have launched with a dual listing in both the UK and US, saying that plenty of big successful companies use this model. "But we also obviously want to promote the UK as an exclusive venue for listing."
The Register asked Arm and SoftBank for their views on the matter, but SoftBank declined to confirm whether it had been in talks with the UK government over the IPO, and Arm declined to comment.
Location, location, location
The place where Arm is listed after its public offering may seem a mere academic concern, but it would be a blow to the UK tech sector, and could even see the chip designer transfer its headquarters the US, at least those are fears from insiders at Arm's Cambridge base.
Arm is reportedly [6]cutting one in ten jobs in the UK organization , equating to around 350 roles. Worldwide, Arm is planning to expunge about 1,000 positions.
[7]
A senior source close to the company [8]told us last month that more layoffs at the company HQ in Cambridge are likely if the IPO happens in the US.
"If Arm lists on the Nasdaq or the Dow Jones there is a requirement to move the HQ to the USA," the source told us. "If it lists on the FTSE100 at its current valuation it would be the ninth biggest company listed. The rumor is Arm is too big for a London stock exchange listing."
The IPO for Arm was planned to [9]value the chip company at up to $60 billion – close to the figure that Nvidia was expected to pay for it if the transfer from SoftBank had gone ahead. The two companies [10]cancelled the move in February, citing significant challenges with the amount of scrutiny the deal was coming under from various regulatory bodies.
[11]
However, reports in April suggested that SoftBank had changed tack and was said to be [12]planning to keep a controlling stake in Arm , selling off a smaller portion of the business than originally planned so that it can retain a controlling interest over the company.
[13]SoftBank aims to keep control of Arm after IPO – report
[14]SK Hynix may head up consortium to buy Arm
[15]Arm's $66bn sale to Nvidia is off: Deal collapses after world's competition regulators raise concerns
[16]Goldman Sachs reportedly set to head up $60bn Arm IPO
The number of tech businesses that have expressed an interest in taking a stake in Arm continues to grow. The latest was chipmaker [17]Qualcomm , which said it would like to create a consortium that would keep Arm neutral, or at least out of the hands of any individual chip company.
Earlier this year, the co-CEO of Korean chipmaker SK hynix told a meeting of the company's shareholders that it was considering [18]forming a consortium to buy Arm , while Intel CEO Pat Gelsinger said at the company's [19]Investor Day in San Francisco that he would be interested in participating in any buying group that emerges to take ownership of Arm.
SoftBank has previously stated that it aims to complete the Arm IPO within its fiscal year ending March 31, 2023. ®
Get our [20]Tech Resources
[1] https://www.ft.com/content/ee38d755-73ac-49e4-a9af-a53ca863fdc8
[2] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=2&c=2YqkFAZGaZjdFQE@ZuJ6xnQAAAIg&t=ct%3Dns%26unitnum%3D2%26raptor%3Dcondor%26pos%3Dtop%26test%3D0
[3] https://www.gov.uk/government/publications/uks-digital-strategy
[4] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YqkFAZGaZjdFQE@ZuJ6xnQAAAIg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[5] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YqkFAZGaZjdFQE@ZuJ6xnQAAAIg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[6] https://www.telegraph.co.uk/business/2022/05/21/british-tech-champion-arm-slashes-uk-jobs-prepares-new-york/
[7] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=4&c=44YqkFAZGaZjdFQE@ZuJ6xnQAAAIg&t=ct%3Dns%26unitnum%3D4%26raptor%3Dfalcon%26pos%3Dmid%26test%3D0
[8] https://www.theregister.com/2022/05/31/qualcomm_arm_consortium/
[9] https://www.theregister.com/2022/03/25/goldman_sachs_arm_ipo/
[10] https://www.theregister.com/2022/02/08/arm_cancels_sale_to_nvidia/
[11] https://pubads.g.doubleclick.net/gampad/jump?co=1&iu=/6978/reg_onprem/systems&sz=300x50%7C300x100%7C300x250%7C300x251%7C300x252%7C300x600%7C300x601&tile=3&c=33YqkFAZGaZjdFQE@ZuJ6xnQAAAIg&t=ct%3Dns%26unitnum%3D3%26raptor%3Deagle%26pos%3Dmid%26test%3D0
[12] https://www.theregister.com/2022/04/22/softbank_arm_ipo/
[13] https://www.theregister.com/2022/04/22/softbank_arm_ipo/
[14] https://www.theregister.com/2022/03/30/sk_hynix_may_head_up/
[15] https://www.theregister.com/2022/02/08/arm_cancels_sale_to_nvidia/
[16] https://www.theregister.com/2022/03/25/goldman_sachs_arm_ipo/
[17] https://www.theregister.com/2022/05/31/qualcomm_arm_consortium/
[18] https://www.theregister.com/2022/03/30/sk_hynix_may_head_up/
[19] https://www.theregister.com/2022/02/26/intel_bitcoin_chip/
[20] https://whitepapers.theregister.com/
Overtaken by events.
Considering what has happened to world stock exchanges and especially Nasdaq, any listing looks risky now.
This entire Arm episode is, sadly, turning into a complete Totally Idiotic Transfer of Stock Under Pressure... for Softbonk ™ .
A bit late...
UK gov could have prevented the Softbank acquisition if it really cared. All words, no action.
Uk gov prefers companies like Cambridge Analytica.
Notice...
...how the business side of the company is gradually dominating the technology, the latter being just a vehicle for generating cashflow?
If the UK government had its head screwed on (rather than lurking in some comfortable dark and warm place) it would be effectively writing off ARM as a "British" technology company and looking around to foster a RISC-V operation or two. But their focus is, as ever, on the finance aspects with the lucrative percentages that could be creamed off any dealings, the ability ot leverage and so on. Another missed opportunity, IMHO -- after all, as ARM gradually sheds talent it would be useful to have something to sweep it up with.
Re: Notice...
Yes, there is that notion in the government that UK is ARM and that's it. The conditions under which ARM has become ARM no longer exist. There is not going to be another ARM in the UK, nor RISC-V, because the economy has been designed to outsource everything to China or India. If you wanted to develop anything in the country, you would get eaten by taxes and regulations.
Dead in the water
The reality is that thanks to government measures hostile to small, medium business and freelancing the pool of valuable talent is dwindling. People who have brains know that living in the UK with its extremely high taxes is a rip off. I mean, I am sure people wouldn't mind paying but if one does not get value for money after a while you feel like a mug.
Like when you become a victim of a burglary, you'll get lucky if police even come and have look or when you get sick - good luck getting an appointment with a GP. Sure you can pay for private security or get private health insurance, but you cannot deduct these costs from your taxes.
Or do you want to put your business idea to test? Complex regulations, IR35, business rates and a ton of other road blocks, that are easy for a big corporation with accountants and solicitors on a speed dial to deal with. But for little people? Forget it.
The government idea of people running small business is a small caffe or selling hats from China. High tech is reserved for party donors and their corporations and valuable people are leaving for the US and other countries.
Reality check
There's a lot of whining tosh being spouted in this thread.
The stock exchange where ARM gets registered will rake in its commissions whether ARM flies or dies.
Due to an accident of geography, the City of London is the only major international financial centre where you can cut a deal across the world, from Tokyo to Frankfurt to California, in a single working day. The Franco-German alliance which runs the EU tried to usurp that and undermined the City every which way it could. Brexit has given the City the opportunity for a new lease of life, and this Tory government is doing its best to help that along.
ARM is too big for yesterday's betrayed City perhaps, but not for tomorrow's resurgent dreams.
As ever in the Capitalist world of high capital stakes, you pays your money and you takes your choice.
Re: Reality check
>Brexit has given the City the opportunity for a
>new lease of life, and this Tory government is
>doing its best to help that along.
Fascinating, as Spock would say. Earthlings apparently help things along by employing clowns to play with the dressing-up box.
>yesterday's betrayed City perhaps, but
>not for tomorrow's resurgent dreams
Ah, a dream. Yes now I see.
Apparently you found a source to say:
"If Arm lists on the Nasdaq or the Dow Jones there is a requirement to move the HQ to the USA," the source told us. "If it lists on the FTSE100 at its current valuation it would be the ninth biggest company listed".
Which leads one to conclude that your source is not the smartest tool in the shed...
The NASDAQ is an exhange.
The Dow Jones (Industrial Average) is a benchmark index of how a group of 30 "blue chip" companies are doing. You can't "list" on it. And it includes companies (like "Microsoft", who are traded on the NASDAQ exchange).
The FTSE100 is a similar benchmark index (although somewhat more sophisticated in its structure than the DJIA). Again, you can't list on it.
I suspect they meant the NYSE and LSE instead of Dow Jones & FTSE100, but who knows?
Also, "being the 9th biggest company listed" is factually incorrect (if it's valued at $60B, that puts it at 13th, above Anglo American at $59B), but no-one really cares. If the Dow Jones Publishing Company decided to include ARM (should it be traded on the NYSE or the NASDAQ) as part of the DJIA, it would be... 28th (after Boeing). But as I said, no-one cares: if you look at the Tokyo equivalent of the FTSE100 (the Nikkei 225), guess who's at number 10 (and for whom that's not an obvious problem)??
British companies listed in on the IS Stock Exchange
AMEC Foster Wheeler
AON
Avon Products
AstraZeneca
(I ran out of enthusiasm before getting to ‘B’)
It’s all misplaced pride; once the company is listed the shares can be owned by people from almost 200 countries…
Re: British companies listed on the IS Stock Exchange
Got that wrong, didn’t I?
The US exchange, obviously
Not going to happen
And the best thing is the public will never know why.
It's not like the UK really needed them anyway. After all they'd have to be fabbing in femtoinches too.