UK stock market relocations to New York do not amount to a crisis | Ian King

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Business presenter Ian King explains why he is not pushing the panic button in the City as CRH gives notice of its plans to join a string of companies heading for the exit in favour of Wall Street.

Looking at recent headlines, one could be forgiven that there is a host of UK-listed companies packing their bags and preparing to head to New York., the world's biggest supplier of building materials, is moving its main listing from London to New York - in the process depriving the FTSE 100 of a £29.4bn global leader.

Perhaps the most shocking headline this week, though, has concerned a movement in listing that didn't even happen. Albert Manifold, its chief executive, is Irish, as was his predecessor, Myles Lee. It was jointly listed in Dublin and London and it was only as recently as late 2011 that it decided to move its main listing to the latter.

It made sense for Ferguson, too, to move. By the time it took its main listing to New York, more than 90% of its sales and profits were derived in the US, a percentage that actually increased following the demerger of Wolseley.ARM is a former FTSE 100 stalwart that is predicted to snub a London return in favour of the NASDAQ

He may also feel that US investors will value Flutter more highly than their British peers. Flutter owns a fantasy sports provider called FanDuel whose primary US rival, DraftKings, has at various times in the past been valued at more than the whole of Flutter. Consider this. Shell, which has just reported a profit for 2022 of $39.9bn, is currently valued at £177bn by the stock market. Chevron, which has just reported a 2022 profit of $36.5bn, is valued at $309bn.

 

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