Shulou(Shulou.com)11/24 Report--

On November 21, British chip designer ARM said its listing on the London Stock Exchange would be postponed to late 2023.

ARM delayed its listing because management worried that the global economic downturn and the collapse in technology stocks could scare off potential investors.

A few days ago, ARM wrote to private shareholders that an IPO could value the company at as much as $40 billion, but it won't take place until late next year. It was widely expected that the company would go public as early as the first quarter of next year.

British government officials have been lobbying ARM to list on the London Stock Exchange.

"obviously, we want to do IPO as soon as possible," Ian Thornton, head of investor relations at ARM, told investors. "but given the current uncertainty in the global economy and the state of the financial markets, this is unlikely to happen before the end of March 2023." "however, preparations for the company's IPO are going very well and are in the late stages of preparation," he added. "We can indeed commit to going public sometime in 2023."

Analysts had estimated that ARM could have a market capitalization of as much as $40 billion after its IPO. ARM's chip design has been used by more than 500 customers, including Apple, Samsung and Google, in products such as iPad, mobile phones, cars and smart televisions.

Shares of large technology companies, including Facebook parent Meta, Google parent Alphabet and Amazon, have all fallen sharply this year as investors worry that soaring inflation, rising interest rates and economic uncertainty will affect consumer demand and advertising revenue.

In 2016, Softbank Corp. bought ARM for a huge sum of US $32 billion. The postponement of the listing plan of ARM will also bring more pressure to Softbank Corp., who has failed in a series of investments.

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