…By Larry John for TDPel Media.
Hermann Hauser, founder of ARM’s technology at Acorn Computers, has warned that Brexit has damaged the reputation of London’s City and is partially responsible for one of the UK’s biggest tech companies, ARM, opting to list on the New York Stock Exchange instead of London.
ARM aims to raise $10 billion with its IPO.
Hauser believes this figure would not be achievable in the UK.
ARM is one of the few world-class UK tech companies, with its technology present in most smartphones, and was purchased by SoftBank for $31 billion in 2016.
London’s Status as a Financial Hub Undermined
ARM’s decision to list on the New York Stock Exchange follows research in 2020, which indicated that Paris had become Europe’s biggest centre for trading equities, overtaking London.
Paris has widened the gap since then, with a total market capitalisation of $3.13 trillion, surpassing London’s by $250 billion, according to Bloomberg data.
Brexit, combined with the Covid-19 pandemic and the aftermath of Russia’s invasion of Ukraine, has contributed to the UK’s economic struggles.
Additionally, trade from the EU to the UK has declined sharply since Brexit, and the loss of hundreds of thousands of European workers has resulted in labour shortages in some industries.
Possible Return to London in the Future
Hauser claims there is still a significant amount of support for ARM in London, and the company could eventually have a secondary listing in the London Stock Exchange.
He emphasised that ARM is a UK-based company, one of the more successful global technology companies, and it would make sense for the company to return to London.
Brexit’s impact on the UK’s economic landscape has been substantial, with the country’s reputation as a financial hub undermined.
ARM’s decision to list in New York rather than London can be viewed as a reflection of the City’s declining image.
The Covid-19 pandemic and the aftermath of Russia’s invasion of Ukraine have also contributed to the UK’s economic struggles.
The decline in trade between the EU and the UK, coupled with a shortage of European workers, has exacerbated the situation.
Hauser’s comments highlight the possibility of a future return to London for ARM.
Still, the firm’s decision to list on the New York Stock Exchange indicates the current preference for a market perceived as more stable and attractive to investors.
However, it is worth noting that London’s reputation as a financial centre is not entirely lost, and the UK still has a significant presence in the global tech industry.