Ocado shares rise as investors call for switch from London listing to New York

22 April 2024 , 11:41

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Ocado shares moved higher on Monday amid reports that the group has spoken to investors about moving its stock market listing from London to New York (Image: PA Media)

Ocado shares have risen after it has reportedly come under pressure from investors to move its London stock market listing across to New York.

The retail technology company has discussed the possibility of a move to the US after holding talks with shareholders in recent weeks, says the Sunday Telegraph. If the move happened it would be another blow to London's struggling stock market, considering the series of similar delistings and privatisations in the last year.

Monday morning trading saw Ocado's share prices rise by 3.7% to 359.9p, with investors responding favourably to the prospect of relocation. Ocado Group has declined to comment. Ocado has seen its lowest share prices in roughly 10 months last week.

The Sunday Telegraph reports that at a private dinner last month, at least one prominent fund manager advised Ocado's management to look into relocating its listings to New York. City insiders also shared with the newspaper that chief executive Tim Steiner may be open, or even "persuaded", to initiate the pivot, amidst requests for the firm to further champion its role as a technological enterprise.

Compounding this is the looming danger of a shareholder rebellion over pay disputes at its forthcoming annual general meeting. Two investor advisory groups have recommended that stakeholders rebuff a new compensation agreement for Mr. Steiner, which could yield him a bonus of up to £15million.

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Any move by Ocado, which currently has a market value of around £3billion, to delist from London would represent another severe hit for the London Stock Exchange. The index has only seen six listings so far this year and has witnessed a number of other major firms move away, such as travel firm Tui and Paddy Power owner Flutter.

Lawrence Matheson