British semiconductor firm Imagination set for New York IPO

Imagination Technologies, a Hertfordshire-based semiconductor company, is set to go public with an IPO in New York, sidestepping London.

The decision comes on the heels of rival Arm, which recently applied for its IPO on the NASDAQ. Both instances further underscore the challenges the London Stock Exchange (LSE) is grappling with.

While some speculate that Imagination could float on the NASDAQ later this year, 2024 seems more probable. Barclays, among other financial institutions, is reportedly in collaboration with Imagination for the upcoming IPO.

Imagination was previously listed in London, but was taken private six years ago after being acquired by Chinese-backed equity fund Canyon Bridge Capital Partners. At the time of this acquisition in 2017, Imagination was valued at £550 million.

Known for its graphics processing unit (GPU) designs, neural network accelerators for AI processing, and networking routers, Imagination Technologies has a number of prominent clients, including Apple, which incorporates its GPUs in its iPhones.

Former Nokia executive, Simon Beresford-Wylie, now spearheads Imagination as the CEO, with a vision to challenge competitors like Arm. Notably, the semiconductor firm is diving into the development of a rival microprocessor technology, RISC-V.

Recent accounts unveiled that Imagination’s revenues for the year ending December 2022 reached £120 million, marking an 8% growth year-on-year. The pre-tax profit stood at £17 million.

However, the broader picture highlights pressing concerns for London’s financial ecosystem. The LSE has witnessed a 60% plummet in the number of listed companies since the 1990s, accompanied by dwindling daily trading volumes.

The UK Government is exploring avenues to invigorate the LSE. In a recent Mansion House speech, Jeremy Hunt proposed initiatives aimed at reducing bureaucratic hurdles for companies looking to raise capital on the market.

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