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Perusing the FTSE table on where some of my holdings currently reside, surprised to see Hutchmed only 30 points away from FtSE100 auto entry.
Some index funds will be unable to buy HCM due to AIM listing, perhaps a move to the main segment would be in order
HCM 119/120
https://www.stockchallenge.co.uk/ftse.php
The main listing has been moved to HK….so it would further restrict eligibility within the FT100.
We should be careful about wishing for the AIM listing to change as it may mean no UK listing!.
In other news, the two pipeline announcements both seem encouraging and in line with disciplined prioritisation. They always wanted to take Surufatinib into pancreatic cancer…..and a combination is a positive way forward atleast in China.
The second announcement about 306 was indicated in their latest corporate presentation as a new pipeline entry.
I do wonder if with funding less of an issue we will see the purse strings loosened on the earlier stages of pipeline development.
It would mean joining their peer groups here in the UK, Astra and so on.
Joining the FTSE may also be seen as prestigious and quite an achievement, it also opens up a whole new world of investors too, funds that cannot buy AIUM listed companies.
Echo Lauders comments on a d v f n, really hope these announcement help additional patients.
Indeed, back to being the largest AIM stock….(not a position that has ended happily for many incumbents)
Not sure there are many Pharma peers within the FTSE100 and even less convinced that HCM is a peer of GSK/AZN. Its peers (maybe up to US$10bn are really found in HK/Shanghai and for the more internationally focused Nasdaq. A small number also exist in Europe.
Moving to FTSE 250 list was discussed in the past.
2 -3 years ago, I had emailed the company asking if the management was considering such a move. I had quoted the advantages often discussed on this forum, such as getting wider publicity and attracting investments from major funds. Mr Hogg, then CEO, had replied that the company was aware of the potential of such a move, but they had other priorities. Is it correct, moving to the main market would include expensive administrative affair?
That is the downside amones, its very expensive and would add another layer of bureaucracy to their workload.
That said, things are different now with a change of strategy/management, it has to be tempting being so close.
The London Stock Exchange has a fee calculator for listings.
For a £3bn company there is an admittance fee of 700k and annual fee of 168k (118k on AIM).
There will be additional fees to FCA, legal work and administration costs, so probably around £1m to move and additional 75k pa.
Not material to the Group but also not insubstantial when considering the needs of some additional investors.
The upside for investors is likely less volatility, driving the price down to unrealistic levels would be difficult as backstopped by FTSE trackers.
Its also worth remembering, AIM is not cheap either especially for overseas companies - HCM will be paying a minimum of £500k p/a, that would be a bare bones quote without PR which HCM have in all three locations.
Another upside could be a higher valuation, this is not guaranteed of course but given small free float likely imo.
It may be best to let sleeping dogs lie in this case….there are plenty of Biopharmas with HK and US listings with no UK listing…and if they do a review it is more likely to result in a de-listing in the UK than a move to the main board.
Talking of volatility lol, at least the pull backs in UK are on lower volume..
China is on the up too, with Hang Seng approaching 20,000 if it can push through we see it join other bull markets around the globe..