In order to attract global investors, AstraZeneca said it will directly list its ordinary shares on the New York Stock Exchange, in addition to its shares trading in the UK and Sweden.
To do so, the Anglo-Swedish pharmaceutical giant needs to replace its existing US listing of AstraZeneca American Depositary Receipts (ADRs) on the Nasdaq.
The company said that the move aims to harmonise its listing structure "while remaining headquartered in the UK".
"The Board of AstraZeneca is recommending to shareholders a Harmonised Listing Structure for the Company’s ordinary shares across the London Stock Exchange (LSE), Nasdaq Stockholm (STO) and the New York Stock Exchange (NYSE)," the company said in a statement.
The announcement follows increased speculation that the pharma company may move its shares entirely from the London Stock Exchange, where it is one of the largest companies traded. And according to analysts, the current announcement doesn't exclude this possibility in the future.
“While there is logic to shifting to a direct listing in the US rather than American Depositary Receipts beyond setting up for any longer-term moves, it does at least hint at the possibility of a more dramatic shift at some point in the future," said AJ Bell investment director Russ Mould.
The US has the world’s largest and most liquid public markets by capitalisation. A direct listing makes it easier for US investors to buy AstraZeneca shares directly without going through ADRs.
Compared to ordinary shares, American Depositary Receipts come with additional costs and extra steps. ADR investors may be subject to fees and double taxation, and ADRs come through a custodian bank.
"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,” said Michel Demaré, Chair of AstraZeneca.
In response to the announcement, AstraZeneca's shares listed on the FTSE 100 rose 0.71% at around 11.30 CEST.
