LONDON |
LONDON (Reuters) – Groupe Eurotunnel (GETP.PA) is to drop its near-dormant listing on the London Stock Exchange (LSE.L) and switch to NYSE Euronext’s (NYX.N) new London-based market, becoming the first stock to be listed on the latter exchange.
NYSE Euronext, based in New York and Paris, is trying to establish a London presence and said Eurotunnel – owner of the rail tunnel linking Britain and France – had moved its listing (GETPq.L) to benefit from better liquidity and a broad investor base.
Eurotunnel, which has a market capitalisation of 3.5 billion euros (2.7 billion pounds), previously had a dual listing with the LSE in London and NYSE Euronext in Paris, but has effectively opted for the transatlantic exchange in Paris and London.
“Our London listing has not had enough liquidity. A single trading platform and a single order book will simplify access to our stock,” said Jacques Gounon, chairman and chief executive of Groupe Eurotunnel.
The establishment of a London-based stock market by NYSE Euronext pitches the exchange group into competition for listings with the LSE, which aims to establish itself as the venue of choice for international firms wanting to list on a leading western market.
“NYSE Euronext’s London-based listings venue looks to extend the group’s strong brand to international firms looking to list in London and access its deep pool of institutional investors,” said Richard Perrott, an analyst at Berenberg Bank.
London, which has more listed companies than any other European exchange, has seen little initial public offering activity over the past year as stock markets struggle with worries about euro-zone debt.
Last month Georgian Railways and Russian real estate investor O1 Properties both pulled planned London listings due to choppy markets.
NYSE Euronext was forced to drop its planned $7.4 billion (4.7 billion pounds) merger with Deutsche Boerse (DB1Gn.DE) in February after European competition authorities opposed the deal.
(Editing by Dan Lalor and David Holmes)