By Kyle Morris


U.K. semiconductor designer Arm said Friday that it and SoftBank Group Corp. have agreed that a U.S.-only listing for Arm in 2023 is the best path forward for the company.

The company said its decision follows engagement with the British government and the FCA over several months.

Arm outlined new plans to increase its U.K. presence, with a new site in Bristol and headcount growth. It also intends to maintain its headquarters, operations and material IP in the U.K.

The company also said it intends to consider a subsequent U.K. listing in due course.

The U.S. IPO could value the company at as much as $30 billion or more, some analysts and bankers estimate.

In 2016, SoftBank Group Corp. bought Arm for $32 billion. Two years ago, the Tokyo-based technology company reached an agreement to sell the company to Nvidia, but the deal was scuppered amid opposition from other chip makers and regulators.

SoftBank said last year that it was pursuing a public listing of Arm by March 2023. Arm shares will most likely be listed on the tech-heavy Nasdaq in the U.S. because many of Arm's customers are based in Silicon Valley, SoftBank Chief Executive Masayoshi Son said at the time.

The news comes in the wake of other companies making statements about potential U.S. listings. CRH said Thursday that a U.S. listing is a logical step since it makes about 75% of its Ebitda in North America, and Flutter Entertainment PLC said last month that an additional U.S. listing is under consideration because of its U.S.-based sportsbook FanDuel.

In May 2022, Ferguson moved its primary listing to the New York Stock Exchange from London. The move followed a yearslong effort by the company to shed businesses outside of North America. Following its sale of Wolseley, the company is generating all of its revenue in the U.S. and Canada.

In the third quarter of 2022, Arm made revenue of $746 million and adjusted earnings before interest, taxes, depreciation and amortization of $450 million.


Write to Kyle Morris at kyle.morris@dowjones.com


(END) Dow Jones Newswires

03-03-23 0628ET