Keith Barr, head of Holiday Inn parent Intercontinental Hotels Group, has added to the chorus of voices calling on the government to get serious about the threats facing the London stock market.
In an interview with the Financial Times, Barr warned that the UK is “not a very attractive place” for listed companies right now, calling on authorities to take action to prevent further decline.
“When we listed, there was probably no reason to even think about listing in the US for our primary listing because the FTSE was the FTSE and it was incredibly liquid . . . but things have changed,” said Barr.
In an investor roadshow last month, several IHG shareholders asked whether there were any plans to switch to a primary listing in the US where the group currently has a secondary listing.
Higher valuations and deeper pools of liquidity have enticed numerous high-profile British firms to New York in recent months, including construction blue chip CRH plc and semiconductor stalwart Arm.
“The general consensus is (London’s) not a very attractive place to list new companies versus other markets,” said Barr, citing the lack of interest from pension and insurance funds, as well as stricter listing requirements compared to the US.
The ‘Edinburgh Reforms’ framework announced in December 2022 aims to promote the Square Mile’s virtues, but there is a sense that the government is dragging its feet when it should be ahead of the curve.
Furthermore, Dru Danford, head of investment banking at Liberum, said they “only touch the surface of what is needed” to revitalise London’s competitiveness.
Barr said London “is still a great location to be based out of” and there were no plans to switch listings, but acknowledged “that could change at some point in the future”.