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Equipment rental company Ashtead (AHT.L) has said that it plans to move its primary stock market listing from the UK to the US, in the latest blow to the London market.
Ashtead said in announcement on Tuesday that the company’s board had concluded that the US market is the “natural long term listing venue” for its shares.
The company explained that it is “substantially a US business, reporting in US dollars, with almost all the group’s operating profit (98% in FY24) derived from North America, which is also the core growth market for the business.”
Under the proposed move, Ashtead said it would still keep a UK listing as an international company.
Ashtead said it would next discuss the move with shareholders before putting it forward as a formal resolution for approval and expected any changes to be implemented over the next 12 to 18 months.
Read more: What we know about planned UK private stock market Pisces
The company’s plans follows a number of major firms choosing New York over the London market in the past few years.
Earlier this year, gambling giant Flutter Entertainment moved its primary listing to New York and building materials giant CRH (CRH) did so last year. Meanwhile, Cambridge-headquartered microchip company Arm (ARM) decided to list in New York last year.
Both the government and the UK financial regulator have been making efforts to revive the UK market. Chancellor Rachel Reeves outlined plans for a UK private stock market, partly to help support the pipeline of future listings on the London public market.
Meanwhile, the Financial Conduct Authority overhauled UK listing rules earlier this year to help boost the UK market.
Do you think these efforts will work? And is the UK still an appealing market for companies to list? Vote in our poll below.
Yahoo UK’s poll of the week lets you vote and indicate your strength of feeling on one of the week’s hot topics. After the poll closes, we’ll publish and analyse the results each Friday, giving readers the chance to see how polarising a topic has become and if their view chimes with other Yahoo UK readers.
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