Those still mourning the decision by Arm, the Cambridge-based chip designer, to shun London’s sleepy stock market in favour of a listing on Nasdaq can take solace. It turns out that US investors, contrary to caricature, aren’t so tech-obsessed that they’ll pay top dollar unthinkingly. They also fret about fuddy-duddy fundamentals such as growth rates, price-to-earnings ratios and the political risks that come with not controlling your important Chinese operation.
Thus expectations for Arm’s flotation in New York have come rattling back. Once upon a time – actually only about a month ago – outsiders’ rough guesses for Arm’s price tag was $70bn on the grounds that the company is a proven pioneer and the artificial intelligence revolution lies ahead. Last month, $64bn was the implied valuation in a transaction whereby owner Softbank bought in the 25% stake it did not already own. Now $50bn-$55bn is the range being reported in the US.
