Shares in AstraZeneca PLC (LSE:AZN) rose on Monday as it shared plans to directly list its shares on the New York Stock Exchange instead of American depository shares (ADSes).
The FTSE 100 pharmaceuticals group, which has flitted between being the largest and second largest company in the London index in recent years, will remain listed and headquartered in London.
It characterised the move as a necessary "harmonisation" of its listing structure, requiring an "upgrade" to a direct listing on the New York Stock Exchange, as it has on the London Stock Exchange and Nasdaq Stockholm.
But for some observers, it brought to mind the exodus of London stocks in recent years, with many shifting listings to New York and other exchanges, including moves made or announced from Flutter Entertainment, CRH, Ashtead, TUI, Just Eat and Wise.
AstraZeneca chair Michel Demaré said the proposed harmonised listing structure "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."
The Anglo-Swedish company said a harmonised structure will not change its current status as a UK-listed, headquartered and tax resident company, "which will continue to be included in the FTSE 100 index and the OMX Stockholm 30 index" and remaining bound by applicable UK governance principles and standards.
The move should improve liquidity, said market analyst Neil Wilson at Saxo, but "it’s also a bit of a knock-back for London".
"Can it get the best of both worlds? It wants to improve visibility and tap the deeper markets of the US while retaining its British and Swedish DNA.
"I think there is probably relief that it’s not pursuing a primary listing in New York, but the decision is hardly a ringing endorsement of London.
"It reflects the fundamental, structural issues in the UK for the largest globally-oriented stocks – the depth and liquidity of its capital markets is falling short of what's on offer across the pond."