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Hardware & electrical equipment

ARM Holdings confirms no IPO before March 2023

Where the semiconductor designer will list is another issue of concern for UK government officials

Arm Holdings has confirmed that its float will be delayed until beyond March 2023 at the earliest.

Owner Softbank had already indicated this would be the case when it released its latest results 10 days ago, but ARM reportedly wrote to potential investors last week reaffirming what its parent had said.

Where the semiconductor designer will list is another issue of concern for UK government officials, who desperately want ARM to list in London to underline the country’s credentials as a hub for tech companies.

Softbank though has indicated it prefers Nasdaq and last week said that was where any IPO would take place.

“Clearly, we want to IPO as soon as possible. But given the current global economic uncertainty, given the state of financial markets, that’s probably now unlikely to happen before the end of March 2023,” said Ian Thornton, Arm’s head of investor relations.

“We are fully committed to floating sometime in 2023,” he added.

Softbank had wanted to sell ARM to US chip giant Nvidia, but the deal was scuppered by competition concerns.

Chips designed by the UK company are used by 500 technology companies including Apple and Samsung, the two dominant mobile phone makers.

ARM, which has had a value of US$40bn attributed to it, was acquired by Softbank in 2016 for US$32bn.

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