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<blockquote data-quote="al97" data-source="post: 149238" data-attributes="member: 29424"><p>16 Sep - Commercial Awareness - Tech</p><p>Topic: Why did Arm choose to list in the US and not UK?</p><p>FT: <a href="https://www.ft.com/content/5b129a9e-aa94-4d23-ad49-b0c934ce0dcb" target="_blank">https://www.ft.com/content/5b129a9e-aa94-4d23-ad49-b0c934ce0dcb</a></p><p><a href="https://www.ft.com/content/7bb96cc9-eabe-43d8-a552-2107354c3ea0" target="_blank">https://www.ft.com/content/7bb96cc9-eabe-43d8-a552-2107354c3ea0</a></p><p></p><p>Arm is based in Cambridge and it was listed on the London Stock Exchange (LSE) until Softbank bought it in 2016 and de-listed it. </p><p>Now that Arm has returned to the public market via an IPO, why did the LSE lose its charm over the NASDAQ? </p><p></p><p>Based on the articles I read today, there are three reasons:</p><p></p><ol> <li data-xf-list-type="ol">The lack of government investment </li> </ol><p></p><p>Other jurisdictions have offered aggressive financial incentives to attract tech companies, which is logical as the rising political tensions pressurise countries to be more self-reliant on critical technologies. Also, where a factory is built, job opportunities follow, thereby boosting the economy in the region. </p><p></p><p>For example, the US offers $52 billion for companies to build fabs (chip manufacturers). Especially in the mid-states like Arizona, where TSMC (top 1 mega chip manufacturer, Arm relies on it) is currently building a fab. </p><p></p><p>EU promises EUR43 billion of state aid for the sector. Germany offers billions of subsidies to Intel to build a chip facility. </p><p></p><p>On the other hand, UK plans to offers £1 billion over the next decade to the chip industry. </p><p></p><ol> <li data-xf-list-type="ol">Brexit </li> </ol><p></p><p>UK’s financial market underperformed since Brexit with the loss of passportiing rights (passporting system for banks and financial services to trade freely with minimum authorisation). Paris overtook London’s top spot as EU’s most valuable stock market since 2003. In addition, London capital market records multiple failures: Deliveroo, THG, Made.com</p><p></p><ol> <li data-xf-list-type="ol">Dual-listing</li> </ol><p></p><p>Dual-listing is not favourable because companies can access cross-atlantic investors on the domestic exchange, so foreign listing is an unnecessary cost. </p><p>Note: dual-listing is expensive because co. needs lawyers, bankers, auditors on both sides, coordinating different IPO workstreams, therefore more complicated and time-consuming. For example, if Arm were to dual-list, the UKLA and SEC have very different rules and protocols.</p></blockquote><p></p>
[QUOTE="al97, post: 149238, member: 29424"] 16 Sep - Commercial Awareness - Tech Topic: Why did Arm choose to list in the US and not UK? FT: [URL]https://www.ft.com/content/5b129a9e-aa94-4d23-ad49-b0c934ce0dcb[/URL] [URL]https://www.ft.com/content/7bb96cc9-eabe-43d8-a552-2107354c3ea0[/URL] Arm is based in Cambridge and it was listed on the London Stock Exchange (LSE) until Softbank bought it in 2016 and de-listed it. Now that Arm has returned to the public market via an IPO, why did the LSE lose its charm over the NASDAQ? Based on the articles I read today, there are three reasons: [LIST=1] [*]The lack of government investment [/LIST] Other jurisdictions have offered aggressive financial incentives to attract tech companies, which is logical as the rising political tensions pressurise countries to be more self-reliant on critical technologies. Also, where a factory is built, job opportunities follow, thereby boosting the economy in the region. For example, the US offers $52 billion for companies to build fabs (chip manufacturers). Especially in the mid-states like Arizona, where TSMC (top 1 mega chip manufacturer, Arm relies on it) is currently building a fab. EU promises EUR43 billion of state aid for the sector. Germany offers billions of subsidies to Intel to build a chip facility. On the other hand, UK plans to offers £1 billion over the next decade to the chip industry. [LIST=1] [*]Brexit [/LIST] UK’s financial market underperformed since Brexit with the loss of passportiing rights (passporting system for banks and financial services to trade freely with minimum authorisation). Paris overtook London’s top spot as EU’s most valuable stock market since 2003. In addition, London capital market records multiple failures: Deliveroo, THG, Made.com [LIST=1] [*]Dual-listing [/LIST] Dual-listing is not favourable because companies can access cross-atlantic investors on the domestic exchange, so foreign listing is an unnecessary cost. Note: dual-listing is expensive because co. needs lawyers, bankers, auditors on both sides, coordinating different IPO workstreams, therefore more complicated and time-consuming. For example, if Arm were to dual-list, the UKLA and SEC have very different rules and protocols. [/QUOTE]
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