BRITISH chip-maker Arm fired the starting gun on plans for a New York stock exchange listing after snubbing London.
The Cambridge-based firm is expected to fetch a valuation of around £50billion, making it the biggest company to go public this year.
Arm is expected to be the biggest company to go public this year
The listing will result in a bumper payday for boss Rene Haas, SE’s analysis of its filings with securities regulators reveal.
Arm’s 330-page listing prospectus also reveals that Mr Haas, 61, was paid £12.5million salary last year and received a further £15.7million award.
In addition the chief executive will get an immediate £15.7million in shares once the company successfully lists and the same again as a “special cash award . . . upon completion of this offering”.
Arm’s flotation comes after Japanese firm Softbank’s attempt to sell the company to chip-maker rival Nvidia for £31billion was blocked by regulators last year.
Softbank had taken Arm private in 2016 for £25billion. The UK government launched a charm offensive to convince Arm to list in London.
But it was dealt a blow when Arm opted for Nasdaq.
Volatile markets have meant there has been a dearth of listings this year, prompting 28 investment banks to pile into Arm’s US listing in an effort to chase fees.
Having an army of bank advisers often means there is a scarce amount of negative analyst coverage in the run-up to a flotation and is a tactic sometimes employed by tech firms.
Arm’s major customers include Apple, Qualcomm and Mediatek, who use its chips in their smartphones and devices.
Its prospectus also details its potential risks in China, which analysts warned could dampen some investor demand.
Arm has an independent unit that serves Chinese consumers, and accounted for almost a quarter of last year’s revenues.
Its filing with the SEC says: “Our concentration of revenue from the People’s Republic of China (PRC) makes us particularly susceptible to economic and political risks affecting the PRC, which could be exacerbated by tensions between the US or the UK and the PRC with respect to trade and national security.”
Formula milk law is ‘nuts’
Richard Walker, Managing Director of Iceland Foods, has hit out over baby milk laws
THE boss of Iceland has said current rules barring retailers from putting infant formula on promotion are “nuts”.
Richard Walker, the supermarket’s chairman, will today launch a petition calling on the Government to change its rules, after local authorities and the Department of Health said the chain may be breaking the law on discount baby milk.
It comes after Iceland last week slashed the price of its formula milk range by more than 20 per cent.
Speaking to SE, Mr Walker said: “How else are we to let desperate parents know we are acting to help them?”
Infant formula has shot up in price so cash-strapped parents can no longer afford a single tin with the Government’s £8.50 Healthy Start voucher.
Laws banning supermarkets from putting baby formula on a discount were introduced to stop anyone from promoting alternatives to breastfeeding.
Breastfeeding is considered the “optimal” way to nourish babies by the World Health Organisation.
However, only 30 per cent of British parents exclusively breastfeed their children between birth and one year of age, public health data shows.
The law also restricts customers from buying formula on loyalty points, food bank vouchers or gift cards.
Shops are even prevented from offering free parking to people only buying formula.
Mr Walker said: “This all seems nuts at a time when some parents are trying to save money by reducing feeding frequency, ignoring ‘best before’ dates, over-diluting powdered infant formula or even trying unapproved foods like porridge — all of which come with big risks to infant health.
“We’re not seeking in any way to undermine the fundamental message that breastfeeding is best. Merely for an adjustment to the rules to allow retailers to help struggling families.
“We are now calling for a change in the law. Specifically, we want to see an end to restrictions on publicising the price of formula, and for customers to be allowed to use loyalty points, gift cards or food bank vouchers to buy it.”
Dr Vicky Sibson, director of First Steps Nutrition Trust, said: “It is the Government’s responsibility to intervene to bring infant formula prices down across the board.”
M&S IN BIGTIME
RETAILER Marks & Spencer is on track to end a four-year absence from the FTSE 100 in a sign that its upturn is gathering steam.
M&S, which issued a rare profit upgrade last week, has seen its shares climb by 68 per cent in the year to date after years of stagnation.
In 2019, after an economic downturn, M&S was relegated from the FTSE 100. It had been a member since 1984.
The FTSE is reshuffled four times a year and yesterday they said it is likely M&S will rejoin the blue-chip index.
Microsoft last call
Microsoft has promised it will not restrict Activision games including Call of Duty
MICROSOFT yesterday made a major concession to try to finally get the nod for a £55billion takeover of gaming firm Activision Blizzard.
The Competition and Markets Authority blocked the deal in April, part of a year and a half of delays.
US tech giant Microsoft has now promised it will not restrict Activision games including Call of Duty, left, Crash Bandicoot and World of Warcraft to being released only via its cloud-streaming service.
Microsoft faces paying a £3.5billion break fee if the deal collapses. Activision’s boss Bobby Kotick said the merger had been a “longer journey than expected”.