Companies are increasingly refusing to list in London in favor of the New York Stock Exchange, and this trend may continue, Bloomberg writes with reference to the opinion of analysts.
“If London fails to regain its status as a leading financial center, the trend away from London, mainly to New York, is likely to continue,” says Freshfields Bruckhaus Deringer LLP partner Oliver Lazenby.
Just this week, two major companies, construction materials manufacturer CRH Plc and IT firm Arm Ltd. opted to list in New York.
Meanwhile, bookmaker Flutter Entertainment Plc and biopharmaceutical Indivior Plc are planning secondary listings in the U.S.
Even some companies in the FTSE 100 Index are considering moving their listings to New York, said sources who wished to remain anonymous.
According to Citigroup’s Paddy Evans, U.S. exchanges attract companies with access to a larger capital market, higher valuations and less control over top executive compensation.
The capitalization of the British stock market now stands at about $3 trillion, compared with a peak of $4.3 trillion in 2007. Meanwhile, the combined market value of U.S.-listed companies has more than doubled over the same period, to $43 trillion, according to Bloomberg estimates.
