Ocado shareholders reportedly pushing for move to NYSE
Ocado Group
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16:40 05/11/24
Ocado shareholders are pushing for a potential shift from its London listing to the New York Stock Exchange, it emerged over the weekend.
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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.