Arm, a British semiconductor design behemoth, has applied to sell its shares in the US, potentially paving the way for this year’s largest stock market debut.
Apparently, the Cambridge-based company wants to raise up to $10 billion (£8 billion).
The company announced in March that it did not intend to list its shares in London, dealing a blow to the UK.
In a deal of £23.4 billion, Japanese company Softbank acquired Arm in 2016. Arm was listed in New York and London at the time.
The company creates the technology for processors, often known as chips, which power everything from smartphones to game consoles.
The Taiwan Semiconductor Manufacturing Company and well-known companies like Apple and Samsung use its blueprints to create their own processors.
According to Softbank, it “confidentially submitted a draught registration statement” to the US Securities and Exchange Commission (SEC) for the listing.
According to sources, the company hoped to raise between $8 billion and $10 billion by launching this year on the New York stock exchange’s Nasdaq platform, which is heavily focused on technology.
A corporation becomes public when it is listed on a stock exchange, enabling investors to buy and sell shares of its stock on designated exchanges.
Arm was established in Cambridge, England, in 1990, and has occasionally been characterised to as the “crown jewel” of the UK’s technological industry.
Arm declared earlier this year that it had no plans to pursue a listing on the London Stock Exchange.
Because US exchanges are perceived to offer higher profiles and valuations, Arm’s decision raised concerns that the UK market is not doing enough to attract stock offerings from tech companies.
The registration demonstrates that Softbank is continuing with the substantial sale despite challenging circumstances on the international financial markets.
Since Russia’s invasion of Ukraine, there has been a dramatic decrease in the number of stock market listings. At the same time, following the epidemic, shares of significant technological businesses have decreased.
The listing is “subject to market and other conditions and the conclusion of the SEC’s review process,” according to Softbank.
For its owner Softbank, a successful listing of Arm on the stock market would be good news. Due to the decreasing valuations of many of its investments in technology start-ups, its Vision Funds have suffered losses.