Proposed move to a US primary listing
Execution of the Group's strategy for the benefit of all stakeholders is an important and ongoing consideration for the Ashtead Board. In this context, the Board has been evaluating the optimal listing location for the Group. The Board has concluded that the US market is the natural long term listing venue for the Group and that moving to a US primary listing (while retaining a UK listing in the International Companies segment) is in the best interests of the business and its stakeholders.
Today Ashtead is substantially a US business, reporting in US dollars, with almost all the Group's operating profit (98% in FY24) derived from North America, which is also the core growth market for the business. The Group's executive management team and operational headquarters are based in the US and the vast majority of the Group's employees reside in North America.
In arriving at this conclusion, the Board has considered several factors and potential benefits, including:
· alignment of the primary listing location with the majority of the Group's business activity, leadership team and employee base;
· increased exposure to US investors through a primary US listing;
· enhanced overall liquidity in the Group's shares given access to deeper US capital markets;
· improved Group profile and go-to-market strategy through a Group rebranding as Sunbelt Rentals;
· simplify share ownership for the wider employee base of the Group and expanded access to the recruitment and retention of top US talent; and
· optimised positioning of the Group for inclusion in premier US equity indices.
Over the coming weeks, we will discuss this proposal with shareholders before putting forward a formal resolution for approval for a move to a US primary listing at a general meeting in due course. The Board expects that the necessary steps would be implemented over the next 12-18 months.
