Ashtead Group, a construction equipment rental company valued at £27 billion, has announced plans to shift its primary listing from the London Stock Exchange (LSE) to the New York Stock Exchange.

Having been listed on the LSE since 1986, Ashtead generates approximately 98% of its profits in the US, making this transition a strategic move to increase exposure to American investors.

The company aims to facilitate easier fundraising through its new US listing, while still retaining a secondary listing in the UK.

Before finalizing the move, Ashtead's board plans to consult with shareholders, with the transition expected to be implemented within the next 12 to 18 months.

This decision may raise concerns regarding executive pay, as UK executives typically earn less than their US counterparts, potentially leading to calls for higher remuneration in the UK.

Ashtead's departure from the LSE adds to a growing trend, as significant companies like Arm and Flutter have also opted for US listings, raising concerns about the attractiveness of London as a listing venue.

Despite efforts from the UK government to enhance the competitiveness of London's financial sector, including regulatory relaxations, a notable liquidity gap remains between US exchanges and European ones.

With the majority of its employees and operational headquarters now based in North America, Ashtead reports its earnings in US dollars, further aligning its business with the US market.

The move signifies the loss of a FTSE 100 company for the LSE, highlighting the ongoing challenges faced by the London market in retaining major listings.

While London seeks to attract companies, concerns over governance and human rights issues may deter potential investors, complicating the landscape for future listings.

In light of Brexit, UK officials are advocating for improved access to London's capital markets, suggesting that mutual access could strengthen economic ties with the EU.

The trend of companies moving their primary listings from London to other markets reflects broader challenges and shifts in the global financial landscape.