DCC considers moving its listing from Iseq to FTSE
Energy and distribution group DCC is the latest company to consider deserting the Irish Stock Exchange.DCC said yesterday it was considering seeking admission to the FTSE UK series to boost its profile among a wider group of potential shareholders.
Such a move would involve it cancelling its listing on the Irish Stock Exchange altogether, in a similar fashion to another distribution-focused business, United Drug, which left Dublin for London last year.
The group's announcement comes just days after Irish Stock Exchange chief executive Deirdre Somers called on the Government to assist the ailing market.
She argued that it should consider listing State assets on the Dublin market, to create incentives for young Irish companies to float rather than opt for a trade sale and to change the tax rules for share options.
The number of companies listed on the Irish Stock Exchange has fallen from 76 to 52 over the past decade. In the past year, United Drug and Greencore quit Dublin for listings in London while CRH, the Irish market's largest company, moved its primary listing to the FTSE index.
DCC, which has been listed in Dublin since 1994, said in a trading statement yesterday that the growth of its business and a change in the profile of its investors had prompted a review of its listing arrangements.
"For some time, the majority of the group's revenue and operating profit has been generated in the UK, with most of the group's development activity and expenditure since 1994 taking place outside Ireland.
"In addition," it added, "the profile of DCC's shareholder base has also changed significantly, with approximately 77 per cent of DCC's shares now held by institutional investors outside Ireland."
The group stressed that the proposed change in its listing would not affect either its domicile - it is registered in the Republic - or its operations.