Glencore is contemplating relocating its main stock listing from London, which would be yet another setback for the UK’s premier stock exchange following a series of high-profile exits.
Gary Nagle, the company’s chief executive, indicated that they are evaluating whether such a shift could enhance share values, with New York being the frontrunner for potential relocation.
“Our primary goal is to ensure that our securities trade on an exchange that offers the best and most favorable valuation for our stock,” Nagle explained to journalists.
“There have been prior discussions regarding the suitability of London as an exchange, and if it turns out that there are better alternatives—like the New York Stock Exchange—we need to take that into account.”
Based in Switzerland, Glencore has been listed in London since 2011, when it was valued at roughly £37 billion, marking the largest initial public offering in the history of the London Stock Exchange at that time. This listing significantly enriched Nagle’s predecessor, Ivan Glasenberg, making him one of Europe’s wealthiest individuals with a net worth approaching £6 billion. Glencore subsequently earned the reputation of being a “millionaire factory.”
Nevertheless, London has faced a wave of notable departures, with many businesses citing lower liquidity and diminished valuations as reasons for leaving.
If Glencore follows through with its decision, it would represent one of the largest companies to exit London, given its market capitalization exceeding £40 billion. This would punctuate a substantial loss for the capital, which has been historically regarded as a pivotal center for mining enterprises.
In the previous year, 88 companies either delisted from the London Stock Exchange or shifted their main listings from its primary market, while only 18 companies made their debut on the exchange in 2024.
The United States has frequently become the favored destination for companies moving away, as it provides more substantial capital resources and larger trading volumes.
Ashtead Group, an industrial equipment rental firm valued at £27 billion, recently announced its intention to transition its primary listing to New York, claiming that the US serves as its natural market since approximately 98% of its profits are generated there.
This shift follows other firms such as Flutter, the £42 billion owner of Paddy Power, the travel operator Tui, and the food delivery service Just Eat, all of which have declared plans to move their main listings from London to competing exchanges.
Further compounding the issue, the UK’s blue-chip index has lost out on several significant flotations, including Klarna, the buy-now-pay-later company, which opted for a US flotation.
A rare piece of good news arrived in December when Canal+, an international pay-TV company, successfully launched its IPO in London, marking the largest new listing in two years and described by Rachel Reeves as a “vote of confidence” in the UK’s capital markets.
Glencore is re-evaluating its listing location as it reported a drop in underlying profits for 2024 for the second consecutive year, attributing the decline to reduced commodity prices.
Last year, earnings fell by 16% to $14.36 billion (£11.41 billion), down from $17.1 billion (£13.59 billion).
On Wednesday, the company’s shares tumbled about 7%, placing Glencore among the top losers on the FTSE 100.
