Drugs giant AstraZeneca has revealed plans to overhaul its US listing, but stressed it will keep its headquarters in the UK and remain on the London market.
Cambridge-based AstraZeneca is set to directly list its ordinary shares on the New York Stock Exchange in a move designed to help the group “reach a broader mix of global investors”.
Until now, the Anglo-Swedish group has traded in the US through so-called American depositary receipts (ADRs) on Nasdaq, but ordinary shares are typically easier to trade than ADRs.
The FTSE 100 firm said the plans would not affect its primary listing on the London market and its UK corporate headquarters, allowing investors to trade ordinary shares in the firm across the London Stock Exchange and in Stockholm and New York.
It comes during an increased focus by the company on the US amid efforts to lessen the impact of US president Donald Trump’s trade tariffs, with AstraZeneca recently announcing plans to invest 50 billion dollars (£37.2 billion) in the US over the next five years.
This will include a new state-of-the-art manufacturing facility in Virginia – set to be its largest single manufacturing investment in the world – and expansion of its research and development (R&D) and cell therapy manufacturing operations in Maryland, Massachusetts, California, Indiana and Texas.
Despite being headquartered in the UK, America is AstraZeneca’s largest market, where it employs more than 18,000 staff and makes 42% of total group sales.
It already has 19 R&D, manufacturing and commercial sites across the country.
Michel Demare, chair of AstraZeneca, said: “Today, we set out our proposed harmonised listing structure which will support our long-term strategy for sustainable growth, while remaining headquartered in the UK and listed in London, Stockholm and New York.
“Enabling a global listing structure will allow us to reach a broader mix of global investors and will make it even more attractive for all our shareholders to have the opportunity to participate in AstraZeneca’s exciting future.”
Shareholders will vote on the planned US listing changes at a general meeting on November 3.
This article was written by Holly Williams and PA Business Editor from Press Association and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.