Cantillon: Is Grafton bound for London town?

One could easily imagine senior executives at the stockbroking firms that own the Irish Stock Exchange slapping their collective foreheads yesterday, at the news that Grafton is examining shifting its listing across the Irish sea. Not again, they must have thought.

The ISE was the Lapland of European bourses during the boom years – enough presents for everybody, the place where the magic never ended. Then came disaster. The Dublin-to-London path has been well trodden in by stalwarts of corporate Ireland since the recession began.

CRH was among the first to move its main listing across the way but, thankfully for the brokers, the heavyweight maintained a dual listing here. DCC did likewise this year, while United Drug, Icon and Greencore cancelled their Dublin listings altogether. Cider maker C&C is tipped as another possible contender, although the company says it has no plans to move.

Add to this the fact that the Irish banks, previously giants of the exchange, have seen their values decimated, and you can easily see the quandary facing the ISE. To its credit it has been fighting back, and Dublin is increasingly seen as a premier listing location for global funds, a lucrative revenue line.

Still, the news yesterday from Grafton was unwelcome for Dublin brokers.

It makes sense, though, since London is where most of Grafton’s revenues, profits and shareholders are derived.

Irish companies need international exposure in order to attract new investors. London is a better pedestal than Dublin.

Gavin Slark, Grafton's chief executive, has seemingly learned a lesson from the moves by the other firms, and has flagged it well in advance.

He says it has not yet been finally decided whether the company will move, but appointing London outfit Numis Securities as its broker alongside Goodbody sends a powerful message.

So, no, the outcome of the review is not yet decided. Neither is the next election for leader of North Korea.