Ashtead to shift primary listing stateside, dealing fresh blow to London’s market allure

In a major setback to the global standing of the London Stock Exchange, Ashtead, one of Britain’s largest equipment leasing groups, announced plans to shift its primary listing to the United States.

The move deals another blow to London’s efforts to remain attractive to major companies, after a series of high-profile departures in recent years.

Ashtead, which leases construction equipment and employs more than 25,000 staff worldwide, said the United States was a “natural location for a long-term listing” for the group. The rationale behind this is clear: North America now accounts for the majority of the company’s profits, and its leadership team, headquarters, and the bulk of its workforce are already based there.

The company plans to maintain its secondary listing in the UK as an international company, but the decision to move its primary listing across the Atlantic highlights investor concerns about weak London appeal. In recent years, companies worth hundreds of billions of pounds, including British technology company ARM Holdings and Flutter owner Paddy Power, have preferred to float in New York rather than remain tied to their London listings.

Ashtead said it aims to complete the move within the next 12 to 18 months, after consultation with shareholders and a formal vote. The company’s announcement comes at a time when it expects lower-than-expected annual profits due to a weak domestic commercial construction market in the United States. However, he expects a stronger outlook as interest rates start to fall, making borrowing cheaper for construction projects. Securing a larger group of American investors is a major factor behind this move.

Market commentators point out that other motives may also be at play. Dan Coatsworth, investment analyst at AJ Bell, pointed to speculation that a US relisting could help justify higher pay packages for senior executives – something that has faced opposition under UK governance standards. Chief Executive Brendan Horgan’s proposed $14 million pay package has drawn criticism for being “excessive” by British standards, but would be more in line with the standards of top-tier US listed companies.

Ashtead’s shift comes at a time when the British government is trying to stimulate investment, with Chancellor Rachel Reeves recently easing self-imposed debt rules to allow up to an additional £50 billion to be borrowed for infrastructure projects. While the company’s decision may not directly change Ashtead’s domestic investment plans – an Ashtead spokesman insisted that UK investment intentions remain unchanged – the symbolic weight of the move cannot be denied.

Founded in England in 1947 and listed on the London Stock Exchange since 1986, Ashtead consolidated its dominance in the equipment rental business after expanding into the United States in 1990. By the early 2000s, it had become one of the largest companies in America. North. As the next chapter of the company’s journey comes under the scrutiny of US regulators and investors, London will be left to ponder, once again, how to keep the world’s leading companies on British soil.