AstraZeneca Eyes U.S. Listing Boost Amid Liquidity Concerns for London

AstraZeneca plans to offer shares directly on the New York Stock Exchange while retaining its UK and Swedish listings. This move, prompted by significant U.S. shareholder interest, may influence other UK-listed firms as the gap between U.S. and UK market performances widens.

AstraZeneca has announced plans to offer its shares directly on the New York Stock Exchange, a decision that could divert liquidity away from London's stock market. While the company will maintain its listings in both London and Stockholm, the move reflects the significant influence of U.S. shareholders, who represent AstraZeneca's largest investor group.

This strategic shift comes as the British drugmaker reported that its U.S. operations accounted for nearly half of its total revenue last year. The decision is viewed with relief among UK analysts and policymakers, who were concerned about the prospect of AstraZeneca completely withdrawing its London listing, especially after significant investment adjustments in its UK operations.

While the company's market capitalization stands at $230 billion, some experts fear it might spark a trend among other large UK firms to consider similar strategies, especially given the performance disparities between US and UK financial indices. However, AstraZeneca's commitment to retaining its London base is seen as a positive affirmation for the UK's financial market.

(With inputs from agencies.)