UK-listed drugmaker Indivior Plc is actively engaging shareholders in discussions about potentially relocating its primary listing to the United States, with plans aiming for implementation by the summer of this year.
Strategic Rationale
Indivior underlines that this move aligns with its current and future growth strategies, emphasizing the U.S. focus of its proprietary treatments. Additionally, the drugmaker notes that almost 50% of its overall shareholder base consists of U.S.-based investors, further substantiating the rationale for considering a primary listing in the United States.
Impact on London’s Appeal
Indivior’s prospective shift contributes to an emerging trend of companies opting to leave the London Stock Exchange, raising concerns about the city’s diminishing allure for corporate listings. Analysts attribute London’s challenges to attract initial public offerings (IPOs) and retain listed entities to disparities in valuation, with London-listed groups experiencing lower valuations compared to their U.S. counterparts.
Precedents in Transatlantic Moves
This move aligns with the decisions of notable companies in recent years. Arm Holdings, a prominent British chip designer, chose to list on the Nasdaq in New York rather than returning to the London stock market. Similarly, Dublin-based CRH, a building materials group, shifted its primary listing to New York in the early months of the previous year. Advocacy for a similar move has been expressed by a key investor in Pearson, a leading education firm.
As Indivior navigates strategic considerations, the exploration of a U.S. primary listing reflects broader dynamics in the global financial landscape and the evolving preferences of international investors.
