Glencore, the global mining giant, is considering relocating its primary listing away from the London Stock Exchange, with New York emerging as a top contender. This move, if executed, would mark a significant blow to the UK market, following a wave of high-profile departures from the exchange.
CEO Gary Nagle confirmed the company’s exploration of whether a move could unlock better valuations for its shares.
“We want to ensure our securities are traded on the exchange that provides the right and optimal valuation,” Nagle stated. “There have been questions about whether London is the right place, and if there’s a better option—such as the New York Stock Exchange—we must consider that.”
Glencore, which has been listed in London since 2011, was valued at approximately £37bn during its initial public offering—the largest-ever float on the LSE at the time. This listing catapulted former CEO Ivan Glasenberg to near £6bn in wealth, earning the company the moniker of a “millionaire factory.” Today, the company’s market value exceeds £40bn.
However, the LSE has experienced a notable series of exits, with companies citing reduced liquidity and lower valuations as reasons for their departure. Should Glencore proceed with a move, it would be one of the largest companies to leave the London exchange, sending a significant message about the capital’s ability to retain mining industry giants.
The UK market has seen 88 companies delist or shift their primary listing in recent years, with only 18 new listings in 2024. Many of these companies have opted to relocate their primary listings to the US, attracted by deeper capital markets and higher trading volumes.
In December, Ashtead Group, a £27bn industrial equipment firm, announced it would switch to New York, following in the footsteps of companies like Flutter, Tui, and Just Eat. Glencore’s potential departure would further underscore this trend.
Despite the challenges facing the London market, Glencore’s consideration of its listing location comes amidst a decline in underlying profits. The company reported a 16% drop in earnings to $14.36bn (£11.41bn) in 2024, partly attributed to lower commodity prices.
On the FTSE 100, Glencore’s shares took a hit, falling by approximately 7% on Wednesday.
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