SoftBank Corp has decided against listing ARM Holdings (LSE:ARM) shares in London dealing a blow to UK politicians and City officials who had hoped to lure the home grown tech giant back to the square mile ahead of its initial public offering.
Bloomberg reported the news, citing people familiar with the matter, and added SoftBank will instead seek a sole listing in the US later this year.
New York was considered the leading contender to attract ARM, largely due to American investors’ tendency to offer higher valuations to technology firms. SoftBank CEO Masayoshi Son had previously indicated that the Nasdaq, known for its technology-focused listings, was the most probable location for the company’s flotation.
The company is keeping its headquarters in Cambridge for the time being and hasn’t ruled out the potential for a secondary listing in London.
SoftBank is reportedly aiming for a valuation of at least US$60bn for Arm and is poised to appoint banks to lead the transaction as soon as this month, including Goldman Sachs (NYSE:GS), JPMorgan and Barclays, according to sources cited by Bloomberg.
Pricing of the IPO should take place at the end of the summer with the IPO completed later this year.
The chip maker was previously a constituent of the FTSE 100 until 2016 before being bought by SoftBank for £24bn.