Companies are increasingly refusing to list in London in favor of the New York Stock Exchange, and this trend may continue.
Source. Bloomberg writes about this with reference to the opinion of analysts.
"If London fails to regain its status as a leading financial center, the trend of exits from London, mainly to New York, is likely to continue," said Oliver Lazenby, partner at Freshfields Bruckhaus Deringer LLP.
Just this week, two large companies chose to list in New York instead of London – building materials manufacturer CRH Plc and IT firm Arm Ltd.
Meanwhile, the bookmaker Flutter Entertainment Plc and the biopharmaceutical Indivior Plc are planning secondary offerings in the United States.
Even some FTSE 100 companies are considering moving their listings to New York, said the sources, who requested anonymity.
According to Citigroup's Paddy Evans, US exchanges attract companies with access to a larger capital market, higher valuations and less control over top management remuneration.
The capitalization of the UK stock market is currently around $3 trillion, down from a peak of $4.3 trillion in 2007. Meanwhile, the total market value of US-listed companies has more than doubled over the same period to $43 trillion, according to Bloomberg.
Background. As a reminder, the American DFC will raise $250 million to help Ukrainian businesses.