London Stock Exchange exodus hits £107bn as Ashtead eyes the US
The value of companies fleeing the London Stock Exchange for foreign markets has reached £107bn this year after FTSE 100 Ashtead announced it would be heading across the Atlantic today.
In a statement this morning, the construction equipment firm confirmed a long-rumoured move to swap its primary listing to the US, where it has its headquarters and makes some 98 per cent of its profit.
“Today Ashtead is substantially a US business, reporting in US dollars, with almost all the group’s operating profit derived from North America, which is also the core growth market for the business,” the company said.
“The group’s executive management team and operational headquarters are based in the US and the vast majority of the group’s employees reside in North America.”
However, the move will be seen as a blow to the City after a torrent of firms have swapped their listings in favour of international exchanges in the past 12 months, including the building supplies firm, CRH, and betting outfit Flutter.
The total value of companies to have swapped their primary listing to an international exchange has now reached £107bn this year, according to data compiled today for City PM by broker Peel Hunt.
| Company | Value (£bn) |
| CRH | 39 |
| Tui | 2.7 |
| Flutter | 28.4 |
| Smurfitt Kappa | 11.7 |
| Indivior | 1.8 |
| Ashtead | 24 |
| Total | 107.6 |
‘Undoubtedly more will follow’
“It’s a real blow to the London market to be losing another international business,” said Charles Hall, head of research at Peel Hunt.
“Ashtead has been a great success story, listing in London in 1986 and growing to become a FTSE100 company with a £24bn market cap.”
Hall added that “undoubtedly more will follow unless we make the UK a compelling listing venue”.
“Complacency is not an option and the government needs to act quickly if we want to retain a vital industry for the UK,” he said.
The latest exit will add to fears over the appeal of London’s markets after a simultaneous raid by foreign buyers on listed companies this year.
Some 45 listed firms have come under offer or entered talks with private suitors since January at a record value of more than £50bn.
The speed of exits means the London Stock Exchange is shrinking at its fastest pace ever, with just 14 companies having floated since January, according to data from the London Stock Exchange.