Arm, the UK-based microchip design giant, has submitted its application to sell shares in the US, potentially marking the largest stock market listing of this year, with a targeted fundraising of up to $10bn (£8bn).
The Cambridge-headquartered firm has opted not to list its shares in London, dealing a blow to the UK economy. Arm was previously listed in both New York and London before its acquisition in 2016 by Japanese conglomerate Softbank for £23.4bn.
Softbank has confirmed that it has confidentially submitted a draft registration statement for the IPO of its chip design firm Arm to the US Securities and Exchange Commission (SEC).
The announcement did not disclose the expected value or timing of the listing, but earlier reports suggested that the company was seeking to raise between $8bn and $10bn on the technology-heavy Nasdaq platform this year.
Arm had previously ruled out a listing on the London Stock Exchange, prompting speculation that the UK government was in talks with Softbank about a possible UK IPO.
However, Arm has opted for a US listing, with Softbank saying it was “the best path forward”. A successful IPO would be welcome news for Softbank, whose Vision Funds have been hit by losses due to the declining valuations of its investments in technology startups.