Ferguson to consult shareholders on US listing plans
Plumbing company Ferguson has launched a consultation with shareholders as it mulls a US listing following the demerger of its UK division Wolseley.
Ferguson is considering two listing structures, one which would see it seek an additional listing of its shares on a major US stock exchange while remaining part of the FTSE 100.
The other structure would involve a change of primary listing of Ferguson’s ordinary shares to the US, meaning its London listing would be downgraded from premium to standard and booting it out of the FTSE 100 index.
Ferguson said the US is the “natural long-term listing location” for the company, following the sale of Wolseley.
After the demerger, the group’s chief executive and management team will be based in North America, and all of its revenue and profit will be generated there.
The company is hoping to unlock a “pool of capital” from US domestic investors following the shift.
Ferguson chairman Geoff Drabble said: “In assessing Ferguson’s future listing structure, the board’s approach has been to consider carefully what is in the best interests of the company and its stakeholders over the long-term.
“The board believes that Ferguson’s natural long-term listing location is the USA but it is mindful that this is a complex issue for many of our existing shareholders.
“We will now commence a period of further consultation with our major institutional shareholders and will listen carefully to their feedback before setting out any firm proposals in the spring.”