Ocado Under Pressure from Investors to Shift Listing from London to New York

April 21, 2024

Ocado is facing pressure from investors to consider shifting its stock market listing from London to New York, according to recent reports. This move, if pursued, would deal another blow to the London Stock Exchange, which has been struggling with fewer new listings.

At a private dinner last month, at least one major fund manager urged Ocado’s management to seriously explore the idea of moving its listing to New York. The discussions reportedly involve the potential benefits of listing in the U.S., such as better valuations and access to a larger pool of capital, especially for technology-focused companies like Ocado.

The suggestion to move to New York reflects a broader trend where several prominent UK firms, including Arm and now potentially Shell, have chosen U.S. listings over London due to perceived advantages in investor appetite and market conditions.

Ocado’s stock has seen significant declines since its peak in 2020, and while the company has made efforts to improve its retail operations, it remains entangled in a dispute with Marks & Spencer over a final payment related to their online food venture.

Overall, the potential move of Ocado’s listing to New York underscores the challenges faced by the London Stock Exchange in attracting and retaining high-profile companies, particularly those in the technology sector.