Arm Mk 2: Another British tech firm snubs London for New York float
Another British tech firm is set to snub the capital for its stock market debut in favour of New York.
Imagination, which licences its silicon and software designs to companies including Apple, has quietly registered for a public listing in New York, according to a report by the Sunday Telegraph.
Barclays and other banks are collaborating on the IPO.
The Hertfordshire-based firm was de-listed from the London Stock Exchange in 2017 after Chinese-backed fund Canyon Bridge bought it for 182 pence per share, valuing it at roughly £550m.
A listing with a significantly enhanced valuation could come as soon as this year, with 2024 a more likely time frame.
Imagination’s decision follows in the footsteps of rival chip designer Arm, which recently snubbed London for New York’s Nasdaq exchange.
City PM approached Imagination for comment.
Imagination had considered London and New York for a 2021 flotation but paused plans due to volatile tech valuations and a sluggish IPO market.
Now its move to New York echoes a wider trend of UK firms favouring US listings, including Arm, construction supplier CRH, and sports betting company Flutter.
London’s struggle to attract tech companies for listings persists as they often secure better valuations with less scrutiny in the US.
The London Stock Exchange (LSE) is experiencing a steep decline with a 60 per cent decrease in listed companies since the 1990s and falling daily trading volumes.
However, in a bit of brighter news for the LSE, a technology platform helping clients with regulatory compliance, called RTOP, is planning a direct listing on the London Stock Exchange.