Ocado shares rise as investors call for switch from London listing to New York
Shares in the retail technology company moved 3.7% higher in early trading on Monday, with investors welcoming the prospect.
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Your support makes all the difference.Ocado shares have climbed amid reports that the retail technology company has reportedly come under pressure from investors to move its stock market listing from London to New York.
The business held talks with shareholders in recent weeks and discussed the possibility of a move of across the Atlantic, according to the Sunday Telegraph.
Any such move would be another major blow for London’s beleaguered stock market after a flurry of similar delistings and firms being taken private over the past year.
Shares in Ocado moved 3.7% higher to 359.9p in early trading on Monday, with investors welcoming the prospect.
Ocado Group declined to comment.
It comes after shares in the firm dropped to their lowest for around 10 months last week.
The Sunday Telegraph reported that at least one top fund manager told Ocado’s bosses at a private dinner last month that it should explore shifting its listing to New York.
City sources also told the newspaper chief executive Tim Steiner is considering and could be “persuaded” by the move, amid calls for the company to position itself further as a technology company.
It comes amid concerns that the group could also face a shareholder revolt over pay at its annual general meeting.
Two shareholder advisory groups have suggested investors should reject a new pay deal for Mr Steiner which could see him awarded a bonus of up to £15 million.
Any move by Ocado, which currently has a market value of around £3 billion, to delist from London would represent another severe hit for the London Stock Exchange.
The index has only seen six listings so far this year and has witnessed a number of other major firms move away, such as travel firm Tui and Paddy Power owner Flutter.