Getty ImagesEquipment hire giant Ashtead plans to move its primary stock market listing to the US in a fresh blow to the London Stock Exchange.
It said the US was a “natural long term listing venue” because most of its profit was in North America, along with its bosses, headquarters and the majority of its employees.
Ashtead is the latest of several big companies in recent years to delist from the London Stock Exchange [LSE], which denied it was in crisis in May.
Ashtead said it would discuss its proposed move with shareholders before putting it to a vote.
The firm aims to move its primary listing to the US in the next 12 to 18 months, but it will keep a UK listing as an international company.
The firm which hires out construction equipment, has more than 25,000 employees.
Ashtead said annual profits would be lower than expected due to “local commercial construction market dynamics in the US”, which is set to affect rental sales growth.
Firms worth hundreds of billions of pounds have been quitting the London Stock Exchange for the US over the past few years, prompting concerns over how attractive the UK for investment.
These include Cambridge-based microchip giant ARM Holdings, which now sells its shares in New York, and Paddy Power’s owner Flutter.
Ashtead said part of the reason it wants to move is to attract US investors.
Although the US construction industry has been affected by higher interest rates making borrowing more expensive, the firm expects the market for its services to strengthen as rates are cut.
Ashtead’s move comes after UK Chancellor Rachel Reeves changed the government’s self-imposed debt rules to free up billions for infrastructure investment.
The rule change is expected to allow for up to £50bn more borrowing to invest in big building projects such as roads, railways or hospitals.
Ashtead was founded in England in 1947, and has been listed on the LSE since 1986. It expanded into the US in 1990, and in the early 2000s it became one of the largest equipment rental firms there.
