London is set to attract two new IPOs with French TV giant Canal+ and AI startup Pri0r1ty, but the decision by marine-tech company Ashtead Technology to move its primary listing to New York is adding to the country’s retention headache.
Ashtead’s move comes less than a month after food delivery group Just Eat Takeaway announced plans to delist.
Ashtead, which operates mainly in North America and the UK and has 85% of its revenue coming from the US, said in a statement that “the US market is the natural long-term listing venue for the company.” It added that the simpler share ownership structure benefits recruitment and talent retention.
Ashtead intends to retain its UK listing in the London Stock Exchange’s international companies segment after the move.
Its London IPO was only three years ago, with £51.6 million raised (about $65.8 million). The listing represented an exit for BMO Global Asset Management, Buckthorn Partners and Phoenix Equity Partners.
However, Ashtead’s departure coincides with TV streaming platform and production company Canal+ and AI SaaS specialist Pri0r1ty seeking a London listing.
France’s Canal+ will be spun off from Vivendi through its IPO, which Vivendi said is the best option for Canal+ because of its strength with international investors.
UK-based Pri0r1ty is also planning to apply for the AIM Market of the LSE. Alteration Earth, which acquired Pri0r1ty in June, will cancel its listing on the main market.
“Too many early-stage British tech companies think that the only route to growth is through VC funding, or even moving abroad,” said Pri0r1ty founder Daniel Gee. “But I want to send a message that the LSE and the UK capital markets can be a smart and viable route to growing a successful tech company.”
Featured image courtesy of Ashtead Technology
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