Have Doubts About a US Listing? Read This.
CRH plc, the world’s largest building materials company, is the most recent UK company to announce plans to move its primary listing from the London Stock Exchange to a US exchange. The UK is the world’s second-largest capital market, so CRH’s decision to abandon its home market listing speaks volumes about the main advantage of a US one: access to the largest and most liquid pool of equity capital in the global financial market. Granted, two-thirds of CRH’s EBITDA is generated in North America. For similar commercial reasons, Ferguson plc, a UK-based manufacturer with a $29 billion market cap, decided last year to make the NYSE its primary listing.
But let’s also look at Flutter Entertainment plc, the world’s largest listed gambling company. It joins CRH in seeking shareholder support for a primary US listing. Among other “long-term strategic and capital market benefits” its Board of Directors points to are “access to much deeper capital markets, and to new US domestic investors….greater overall liquidity in Flutter shares….and access to important US indices.” If you still have any doubts about the merits of a US listing, then also consider that US-listed shares can be used as an acquisition currency, as well as improve your company’s ability to recruit and retain talent in the US.
Of course, maintaining a successful US listing requires effective investor relations. To learn about how InspIR Group can help you accomplish this, please contact:
Monique Skruzny: email@example.com
Susan Borinelli: firstname.lastname@example.org
Barbara Cano: email@example.com