AstraZeneca's Strategic Shift: U.S. Listing Sparks Market Speculations

AstraZeneca has announced plans to list its shares directly on the New York Stock Exchange. This strategic move has raised concerns among analysts about potential impacts on liquidity in London's stock market. The British drugmaker is one of the most valuable companies listed in London, sparking speculation that others may consider similar diversifications.

The decision to upgrade its U.S. listing, while maintaining its current London and Stockholm placements, highlights the company's focus on its significant U.S. investor base. Last year, the U.S. accounted for 43% of AstraZeneca's total revenue, with expectations to reach 50% by 2030. The company's chair, Michel Demare, emphasized the benefits of tapping into the world's largest and most liquid public markets.

Despite reports suggesting a possible complete departure from London, AstraZeneca reassured its commitment to the UK, citing confidence in the UK economy. The move underscores a broader strategy among London-listed companies to address perceived valuation gaps by considering listings on other markets, where indices have shown stronger performance.

(With inputs from agencies.)