DCC Energy, a FTSE 100 group, has been taken private this week, according to Jonathan Dickson. This development occurs amid increasing global competition for company listings.
Last month, it emerged that up to 20 FTSE 100 companies may move their direct listings to New York. However, Dickson suggests that some UK boards might be overlooking existing methods to connect with US investors.
Companies such as Aviva, JD Sports, Reckitt, and LSEG, which are listed on the London Stock Exchange (LSE), already engage with American investors through cross trading. This mechanism allows US investors to trade these securities in US dollars and during US trading hours, helping to keep liquidity and price discovery anchored in London.
Dickson also highlights that a 0.5 per cent levy on shares and American Depositary Receipts (ADRs) has been in place for four decades, adding a cost to trading for investors. The LSE is reportedly advocating for its abolition.