SoftBank has halted its plans for a London IPO after Boris Johnson’s resignation announcement throws the UK political sphere into turmoil.
Johnson’s government has worked hard to persuade Japanese-owned, Cambridge-based Arm to float in the UK. The Prime Minister himself has also personally lobbied SoftBank’s billionaire founder Masayoshi Son to secure at least a partial listing for the chip designer on the London Stock Exchange.
SoftBank has indicated previously it was leaning towards a New York listing, however the UK’s charm offensive was keeping London in sight.
This was until Johnson’s government collapsed earlier this month, with tech minister Chris Philp, who was instrumental in conversations with Arm, resigning alongside Lord Gerry Grimstone.
Both departures have prompted SoftBank to pause discussions over a London listing in the next year.
If Arm does list in the UK, it would be one of the biggest tech flotations of all time for the London market.
At one point, SoftBank was in talks with exchange execs over a dual primary listing, which meant it would have simultaneously floated on both the London Stock Exchange and the Nasdaq, the Financial Times reported.
SoftBank was in talks with officials and exchange executives over an unusual dual primary listing, in which it would have simultaneously floated in both New York and London, according to people with knowledge of the situation.
Bankers close to SoftBank have warned that the group only considered a share sale in London because of the strong incentives offered by the UK government, the Financial Times reported.
