3 massive UK shares that could relocate their listing in 2025

I’ve identified three UK companies that may consider moving their share listing abroad next year. What does this mean for investors?

| More on:

The content of this article was relevant at the time of publishing. Circumstances change continuously and caution should therefore be exercised when relying upon any content contained within this article.

Departure & Arrival sign, representing selling and buying in a portfolio

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

In recent years, a growing number of UK shares have left the London Stock Exchange (LSE), choosing rather to migrate their primary listing overseas.

Flutter Entertainment and CRH recently made the leap to the US and FTSE 100 stalwarts Shell and Ashtead are considering it. Better valuations, a broader investor base, and a more favourable regulatory environment are often cited as key motivators. 

This trend seems to suggest a shift in the way global markets operate, raising concerns about the UK’s future competitiveness.

Should you invest £1,000 in Ashtead Group Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets. And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ashtead Group Plc made the list?

See the 6 stocks

While a move promises better growth potential for these companies, it may complicate access for UK-based investors. When choosing stocks to buy, investors should consider the impact this may have on their portfolio.

I’ve identified three more UK companies with a motive to consider leaving.

AstraZeneca

There are a few good reasons why the FTSE 100’s largest company by market cap might consider a move to the US. Early this year, the government’s budget plans included a potential cut to funding for a vaccine factory in Merseyside. 

In addition, some of its new medical developments have been rejected by the NHS for not displaying sufficient value. The US promises higher valuations for biotech firms, greater access to capital, and a less rigorous regulatory environment. 

HSBC

THE UK’s largest bank was once headquartered in Hong Kong and still derives half its global revenue from Asia. Its British business is tiny by comparison and it’s already downgraded its head office from Canary Wharf to the City.

With the UK’s financial landscape shrinking, it could consider a move back to Hong Kong or Shanghai. Additionally, the US offers a better banking environment with higher valuations for financial institutions and looser regulatory frameworks than the UK.

British American Tobacco

British American Tobacco (LSE: BATS) might consider relocating its primary listing to the US as it generates 44% of its revenue in the country. It’s already been pressured by GQG Partners to move to New York, where key rival Philip Morris trades at a higher valuation.

Recently, it’s been battling to raise capital to fund its transition towards reduced-risk products such as vaping and heated tobacco. It may find the US more favourable for innovation in nicotine products compared to the UK and its increasingly restrictive policies.

An attractive option?

BAT CEO Tadeu Marroco has described the idea of a US move as a “distraction“, so it’s unlikely to happen soon. That’s good news for UK investors, as it’s a reliable dividend payer with a high yield of 8.2%.

Created with Highcharts 11.4.3British American Tobacco P.l.c. PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.co.uk

But weak performance and high expenses have put the company in a tough position. It’s racked up a lot of debt and posted a £13.9bn loss in its latest figures. If the costly shift to vapes and similar next-gen products doesn’t pay off, it could end up in financial trouble.

Still, analysts seem positive about a recovery. Earnings are forecast to grow 44% in the next 12 months, bringing it back to profitability. With a forward price-to-earnings (P/E) ratio of nine, that would give it an attractive valuation.

My own investment in British American Tobacco has served me well so far. If it delivers strong full-year results on 13 February next year, I will buy more of the shares.

Should you invest £1,000 in Ashtead Group Plc right now?

When investing expert Mark Rogers has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for nearly a decade has provided thousands of paying members with top stock recommendations from the UK and US markets.

And right now, Mark thinks there are 6 standout stocks that investors should consider buying. Want to see if Ashtead Group Plc made the list?

See the 6 stocks

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Mark Hartley has positions in AstraZeneca Plc, British American Tobacco P.l.c., and HSBC Holdings. The Motley Fool UK has recommended Ashtead Group Plc, AstraZeneca Plc, British American Tobacco P.l.c., and HSBC Holdings. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

More on Investing Articles

Array of piggy banks in saturated colours on high colour contrast background
Dividend Shares

A 9.16% yield! Here’s the eye-catching dividend forecast for this hotshot

Jon Smith eyes up a juicy dividend forecast for a renewable energy stock that has a dividend policy aiming to…

Read more »

Rear view image depicting a senior man in his 70s sitting on a bench leading down to the iconic Seven Sisters cliffs on the coastline of East Sussex, UK. The man is wearing casual clothing - blue denim jeans, a red checked shirt, navy blue gilet. The man is having a rest from hiking and his hiking pole is leaning up against the bench.
Investing Articles

Up 30% in 2025, can the Prudential share price keep climbing?

After a few years in the doldrums, Andrew Mackie explains why he believes momentum could push the Prudential share price…

Read more »

Workers at Whiting refinery, US
Investing Articles

I’m pinning my hopes on this activist investor kickstarting the BP share price

Elliott Investment Management reckons the BP share price doesn’t reflect the true potential of the energy giant. Our writer takes…

Read more »

Warren Buffett at a Berkshire Hathaway AGM
Investing Articles

Here’s a Warren Buffett share I’m considering adding to my portfolio!

Of the dozens of businesses Berkshire Hathaway has interests in, this is the Warren Buffett beauty I'm looking to buy…

Read more »

Happy woman commuting on a train and checking her mobile phone while using headphones
Investing Articles

7% and 13.4% dividend yields! 2 investment trusts to consider for a second income

Considering some dividend-paying investment trusts could be a great way to make a start on sourcing a second income in…

Read more »

Smiling white woman holding iPhone with Airpods in ear
Investing Articles

275 shares to consider for a 9.64% Stocks & Shares ISA return!

Looking for ways to boost a Stocks and Shares ISA? Here's a top investment trust that's delivered huge returns since…

Read more »

Close-up image depicting a woman in her 70s taking British bank notes from her colourful leather wallet.
Investing Articles

£10,000 invested in NatWest shares 5 years ago is now worth…

NatWest shares have surged over the past five years, rewarding investors as if it were some sort of revolutionary artificial…

Read more »

Young Asian man drinking coffee at home and looking at his phone
Investing Articles

Does the GSK or AstraZeneca share price currently offer the best value?

The AstraZeneca share price has pulled back in recent months. Dr James Fox explores how the stock compares with pharma…

Read more »