Ocado shareholders reportedly pushing for move to NYSE
By Josh White
Date: Monday 22 Apr 2024
(Sharecast News) - Ocado shareholders are pushing for a potential shift from its London listing to the New York Stock Exchange, it emerged over the weekend.
According to the Sunday Telegraph, recent discussions with investors brought to light the prospect of relocating the company's listing to the US, spurred in part by a significant downturn in Ocado's share price since its pandemic peak.
Formerly valued higher than major UK retailers such as J Sainsbury, Marks and Spencer and Wm Morrison combined, Ocado's market capitalisation had dwindled from £22bn to less than £3bn.
The Sunday Telegraph said some investors saw Ocado less as a warehouse automation technology company and more as a loss-making online grocer, influencing considerations for a potential move to the US.
It said chief executive officer and co-founder Tim Steiner could be swayed by investor sentiment towards relocation, which could further strain a UK stock market that had already seen several companies move abroad in pursuit of better valuations.
However, a potential move could face an obstacle in its existing delivery partnership with M&S, and unresolved disputes between the two companies.
Ocado previously threatened legal action against M&S for allegedly failing to fulfil a final performance-linked payment.
The Sunday Telegraph speculated that M&S could seek to acquire Ocado's stake in the partnership, allowing the latter to concentrate on its technology operations.
Reporting by Josh White for Sharecast.com.
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