Jonathan Cooklin and David Wilson examine developments for UK companies listing in the US, including the emergence of direct trading of UK shares on US markets.
Why might a UK company seek a US listing of its shares? For an established group with a primary listing in London a secondary listing in the US could be a means of access to a new pool of capital or possibly a consequence of the acquisition of a US company through a share-for-share exchange. A growing biotech or IT company deciding where to float might be attracted by the perception of greater investor appetite and more attention from analysts. Or perhaps a US listing might be a consequence of a redomiciliation or an ‘inversion’ transaction (see the boxed text on page 16) influenced by the advantages of...
