"The company says its new harmonised listing structure will merely make it easier for those US funds that aren't allowed to own American depositary receipts (ADRs, a wrapper provided by a handful of banks for US investors) to get their hands on full-fat AstraZeneca stock. A global listing for global investors in a global company, as the cheerful corporate spin put it. But this definitely is not a moment to accentuate the positive."
"The problem is what happens next. It is not hard to imagine AstraZeneca's arguments being adopted by other large FTSE companies that could equally call themselves global on account of generating more of their revenues in the US. Just scroll down the list: Shell, BP, Unilever, Diageo, Relx and so on. None have exactly the same immediate incentive to dress up in stars and stripes while President Trump is on the warpath over US medicine prices and pharma tariffs (possibly a factor in the timing of AstraZeneca's announcement). But all could take the view that ADRs are a hassle and an imperfect substitute for actual shares traded in New York."
AstraZeneca is upgrading its New York Stock Exchange listing to equal status with its London and Stockholm listings while retaining UK headquarters and FTSE 100 membership. The harmonised listing aims to let US funds that cannot hold American depositary receipts acquire ordinary shares more easily. The move reduces friction for global investors and positions the company as globally listed. Concern exists that other large FTSE companies with significant US revenue may follow and pursue equal or primary US listings. Such a mid-Atlantic drift could shift trading liquidity and corporate focus toward New York, weakening London's capital markets over time.
Read at www.theguardian.com
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