Arm, a British microchip designer, has announced that it will not seek a London stock exchange listing this year.
The Cambridge-based company creates the technology that powers processors, also known as chips, which power everything from smartphones to game consoles.
According to reports in January, Prime Minister Rishi Sunak had resumed discussions with Arm’s owner, Japanese investment giant SoftBank, about a potential UK listing.
Arm says it decided a sole US listing in 2023 was “the best path forward”.
“After months of engagement with the British Government and the [Financial Conduct Authority], SoftBank and Arm have determined that pursuing a US-only listing of Arm in 2023 is the best path forward for the company and its stakeholders,” said CEO Rene Haas in a statement.
He added that the company will “in due course” consider a UK listing.
When a company is listed on a stock exchange, it transitions from a private to a public company, with investors able to buy and sell shares of a company’s stock on specific exchanges.
The decision by Arm not to seek a listing on the London Stock Exchange this year has raised concerns that the UK market is not doing enough to attract tech company stock offerings, with US exchanges perceived to offer higher profiles and valuations.
Masayoshi Son, founder and CEO of SoftBank Group Corp, stated last year that a potential Arm listing would most likely be pursued through the tech-heavy Nasdaq exchange.
Arm was listed on both the London Stock Exchange and the Nasdaq for 18 years before being purchased by SoftBank for $32 billion (£26.7 billion) in 2016.
Mr. Haas stated that Arm is expanding its UK presence and headcount, including the opening of a new site in Bristol, and that the company’s material intellectual property, headquarters, and operations will remain in the UK.