The future of ARM is defined. The Wall Street Journal reports that the company has decided to go public, but not in London, as the UK government intended, but in the United States. In New York, more specifically, considering that the company would be listed on the Nasdaq.
The news has not yet been made official by the chip designer firm, although the plan has been revealed by René Haas, its CEO. In this way, ARM puts an end to long months of speculation regarding its future, after falling off the purchase by NVIDIA valued at 40,000 million dollars.
Since those of Jensen Huang abandoned the idea of acquiring the British firm, from the Japanese group Softbank, owner of ARM, they made it clear that the only alternative they were considering It was the IPO in New York. A decision that immediately generated noise in the British political arc.
To the point that the then Prime Minister Liz Truss met with representatives of Softbank to try to convince them that, if they did proceed with an IPO, they would do so on the London Stock Exchange. Or that they would at least consider list the company in both the US and the UKan atypical and quite expensive process.
However, the die seemed to be cast beforehand. From the beginning, the Japanese indicated that if ARM went public, the Nasdaq was the best option. Not only because it would coexist with other large international technology companies, but also because companies used to get a better price there.
ARM will be listed in New York, but will maintain its British essence
Listing in New York will not strip ARM of its British essence, Rene Haas said. The company’s headquarters will still be in the UK, where, in fact, new facilities will be built in Bristol with a view to making more recruitment. In addition, his intellectual property will continue to be registered in that country.
In the future, the company does not rule out a secondary listing on the London stock market. However, it is not part of the priorities, indicates The Wall Street Journal.
It is not yet known when will the OPV take place for ARM to start trading in New York, but everything indicates that it will be in the course of this year. Once this happens, the renowned chip designer will leave behind the tortuous path it has traveled since NVIDIA wanted to buy it in 2020.
Let’s remember that the acquisition ended up being aborted due to pressure from the United States Federal Trade Commission (FTC) on Californians. Although the agreement was also intervened by the United Kingdom, alleging reasons of national security. To all this, the disagreement of companies like Google, Microsoft and Qualcomm was added.
Qualcomm’s case was one of the most striking, since the company proposed to ally with its rivals to buy ARM and “keep her neutral”, something that ultimately did not happen. Coincidentally, in September 2022, the San Diego chipper was sued by the British for violating its licenses after the purchase of Nuvia.