New UK Government Wants To Push Softbank For Listing Arm IPO in UK

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  • New U.K. Prime Minister Liz Truss and chancellor Kwasi Kwarteng prepared to launch a last-ditch charm offensive to persuade Japan’s Softbank Group Corp SFTBY to list British tech company Arm in the U.K., the Financial Times reports.
  • The government looks to push for high-level talks with SoftBank executives after the official mourning period for the Queen ends next week.
  • Softbank previously indicated its desire to list Arm in the U.S.
  • Also Read: Intel Slashes Valuation Of Mobileye IPO As Chipmakers Cut Outlook Citing Uncertain Macro Environment
  • However, Softbank executives explored the possibility of a rare dual listing to own a base on both sides of the Atlantic. 
  • The dual listing implied that Arm could get index inclusion in both markets, boosting the number of funds that could invest in the company and fast-tracking it into the FTSE 100.
  • Still, the U.S. was their primary attraction due to its much higher valuations. London has faced flak for its unattractiveness to fast-growing companies, given the potential for higher valuations and deeper pools of investor cash in the U.S. 
  • Truss’s administration saw the chance to win at least part of Softbank’s flotation as a “big and quick win” to exhibit its seriousness regarding London. 
  • Talks between the government and Softbank broke down in the summer after the departure of Boris Johnson, who had become personally involved in pitching London to the Japanese company.
  • Softbank opted for the Arm IPO after Nvidia Corp NVDA deal collapsed amid fierce opposition from regulators and customers.
  • Nvidia reportedly built its latest data center processor, Grace using Arm’s next-generation of data center chip technology Neoverse V2 design.
  • Photo via Wikimedia Commons
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Posted In: GovernmentNewsRegulationsIPOsTechMediaBriefs
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