SoftBank founder Masayoshi Son said the Nasdaq remained his “favorite” place for Arm’s planned listing despite an intensive UK lobbying campaign for the British chipmaker’s London share issue.
This was reported by the “Financial Times”. This week, the UK government discussed the use of national security legislation to force SoftBank to list Arm in London, as the world’s largest technology investor is reconsidering holding an initial public offering for the company exclusively in the US.
“NASDAQ is the favorite,” Sun said at the annual meeting of SoftBank Tokyo shareholders when asked where he plans to list Arm. The comments were his first public comments on the subject since the campaign began in the UK in February.
He added that most of the chip designer’s customers were in Silicon Valley and that “US stock markets will also be happy to accept Arm.”
But the 64-year-old billionaire admitted the group had “received a strong love call” from London and consulted with experts on what would happen armThe interest of and where the regulations will be most convenient. Ben said nothing was decided.
Prime Minister Boris Johnson sent a letter to SoftBank executives while Lord Gary Grimstone, the UK’s investment minister, met with group executives to encourage listing.
Strengthening Arm’s image as a success story in the UK has become a highly sensitive political issue after criticism that the UK was no longer an attractive place for important companies in the world.
SoftBank acquired Arm in 2016 for $ 32 billion. A planned sale for California-based Nvidia Crashed this year Because of regulatory concerns, it pushes Son to reconsider public registration.
A successful IPO with a targeted valuation of at least $ 50 billion will be important to boost SoftBank’s finances after its Vision fund reported Historical annual investment loss of ¥ 3.5 billion ($ 27 billion) Last month. Its portfolio companies have been hit by a regulatory attack in China and the sale of technology stocks.
Reflecting these pressures, the rating company Moody’s cut SoftBank’s credit forecast from “stable” to “negative”, noting a decline in the value of its portfolio and estimating that SoftBank’s leverage increased.
Moody’s said the collapse of Arm’s sale to Nvidia “presents the challenges surrounding the rapid realization of full value for such gambling.” She added that SoftBank’s plans to list Arm “face a risk of execution in timing and valuation.”
Softbank said Moody’s’s assessment is based on their subjective assumptions and hypotheses with no reasonable basis for support.
In contrast to a grim profit presentation in May, during which Sun described going beyond a more defensive stance, on Friday the SoftBank chairman sought to radiate confidence.
“Never, since the start of my company, have I been in doubt even for one day that the information revolution will come,” Sun said.
To illustrate the point, he introduced slides showing the growth of SoftBank that reflects the increase in Internet traffic over the years and predicted that the trend would continue.
“I believe in a vision of future progress and in that I invest… It will come for sure,” Ben said.
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