The Cambridge-based chip designer, controlled by Softbank Group Corp., unveiled its long-awaited filing for an initial public offering in the US on Monday. It’s the latest blow for the London Stock Exchange, which has seen more companies quit than join, and whose indexes lag behind European and US peers.
“We’re seeing a worrying de-equitisation across the London market from mega-cap to small caps,” said Rory Campbell-Lamerton, a fund manager at Church House Investment Management. “It’s fair to say that the current loosening of restrictions haven’t gone far enough to break the status quo.” “The proposed listing rule changes are very helpful but they are only one part of the solution,” he said.
Economic malaise and limited exposure to high-growth sectors has meant that the FTSE 100 has declined 2.6% this year, compared with the Euro Stoxx 600 Index’s 5.6% gain. In the US, the S&P 500 is up 15% and Nasdaq 100 has jumped 37%.