One of many UK’s Most worthy listed corporations is to promote its shares straight on the rival New York Inventory Trade, in a transfer described as a “knock back for London”.
“Although there has been no suggestion that AstraZeneca is imminently going to up sticks and move its primary listing from London, there may be some nervousness this morning around the risk that the UK market might lose one of its largest constituents,” stated Russ Mould, the funding director of funding platform AJ Bell.
There might also be reduction that AstraZeneca is just not transferring from the London Inventory Trade altogether.
“I think there is probably relief that it’s not pursuing a primary listing in New York, but the decision is hardly a ringing endorsement of London,” stated Neil Wilson, the UK investor strategist at funding platform Saxo Markets.
“It reflects the fundamental, structural issues in the UK for the largest globally-oriented stocks – the depth and liquidity of its capital markets is falling short of what’s on offer across the pond.”
“It’s also a bit of a knock-back for London”, Mr Wilson stated.
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The Cambridge-based pharmaceutical firm stated the choice to promote shares straight on the New York Inventory Trade – somewhat than the earlier much less simple system of utilizing American depository receipts – has been made to permit it “to reach a broader mix of global investors” and “make it even more attractive for all our shareholders”.
“The US has the world’s largest and most liquid public markets by capitalisation, and the largest pool of innovative biopharma companies and investors,” the corporate stated in an announcement to buyers.
