The UK’s tech minister has insisted the US listing of Cambridge-based tech giant Arm is not a done deal, claiming there is still a chance for a UK IPO.
Chris Philp speaking to The Financial Times said the government is “working closely” with the semiconductor group regarding the upcoming IPO.
Arm has been expected to go public in New York ever since the collapsed $40bn takeover of Arm from Nvidia.
However, the Under-Secretary of State for Tech and the Digital Economy has claimed there is no guarantee that Arm will be exiting the UK.
“I think Arm themselves have said that initial comments suggesting that it would be a Nasdaq listing was sort of premature,” Philp said.
The MP also noted the possibility of a dual listing in the UK and US, saying: “Lots of big successful companies use this model. But we’re also obviously wanting to promote the UK as an exclusive venue for listing.”
The government has been keen to expand the appeal of the London Stock Exchange to encourage promising British tech firms to stay in the UK, rather than move on to the States.
The Financial Conduct Authority (FCA) recently published a paper outlining suggested reforms to the London Stock Exchange that included a simplified route for companies seeking a UK listing.
Philp spoke yesterday on the opening day of London Tech Week, where he celebrated the success of the UK’s tech industry, particularly London’s position as a global hub for tech investments.
He also outlined the government’s future plans to expand the growth of UK tech, a new digital strategy, which included encouraging universities and pension funds to ramp up investments into promising tech startups, as well as the development of science, technology, engineering and maths (STEM) education.
Philp’s positive rundown of UK tech success came during a contrastingly difficult period for the industry, as a significant number of companies have announced job cuts and a slowdown in hiring.
Arm reported record sales last month whilst Softbank, which acquired Arm in 2016, suffered a historic loss.
Hermann Hauser, co-founder of Acorn computers, which span out from Arm has said that London is “too small” and a co-listing with New York is the “natural solution”.