Listed Companies Switch Jurisdictions to ‘Get Better Valuations’

A new article by Gavin Hinks for Board Agenda highlights the increasing trend of companies switching their listings from one jurisdiction to another, driven primarily by the pursuit of better valuations rather than regulatory advantages. Research conducted by SquareWell Partners reveals that valuation opportunities, proximity to shareholders, and higher trading volumes are the dominant motivations behind these moves, with regulatory factors ranking much lower.

The phenomenon has gained significant momentum, with record numbers of companies moving their listings halfway through 2024. Notable examples include Glencore and Rio Tinto, under pressure to shift to Australia, and CRH, which completed its move to the U.S. after years of activist demands.

Chinguun Nyambat, an associate at SquareWell Partners, notes this trend is becoming a global issue, likely to grow further as companies rethink the long-term value creation strategies tied to their listing locations.

This trend raises questions about the City of London’s ability to retain its status as a premier financial hub, with the number of listed companies on the London Stock Exchange declining from 2,460 in 2014 to around 1,700 in 2024, despite recent reforms and lobbying efforts.

You can access the full article here (subscription required).