In what’s being called a blow to London equity markets, British chip designer Arm plans to hold its initial public offering (IPO) in New York later this year.
Arm, which is currently owned by Japanese holding company SoftBank, said in a written statement that it plans to only pursue a listing in the U.S. for the time being, with no plans to also list its shares on a European bourse.
The news is generating headlines in the British media, where fears are mounting that the U.K. stock market is losing out to international rivals following its exit from the European Union.
Arm has not completely ruled out a listing in London in the future, saying it may consider a dual listing in England at a later date.
The decision by Arm comes after intense lobbying from the British government to persuade the chip designer to list its shares on the London Stock Exchange.
British government officials are reportedly embarrassed that Arm has chosen a New York IPO.
With 6,000 staff worldwide, 3,000 of which are based in the U.K., Arm is viewed as the premier technology company in England.
The company is also a major force in the global semiconductor industry, licensing its microchip designs to some of the world’s largest consumer tech companies.
Currently, about 95% of smartphones globally, including the Apple (AAPL) iPhone, contain Arm processors.
London has relaxed its listings rules in recent months to attract leading global technology companies to its stock market.
Earlier this week, U.K. Investment Minister Dominic Johnson publicly urged companies around the world to consider London as either a primary or dual listing.
The exact date for Arm’s New York IPO has not yet been set.
