RE: Arm chooses US Listing3 Mar 2023 07:32
Nothing we already know, but a very interesting post by a senior financial planner referencing ARM and CRH going to the US. LSE is finished.
Is it any wonder that companies choose the US or other markets to list over the UK?
Boohoo, Aston Martin, THG, Trustpilot, Made. com, AO. Com, ASOS, Metro Bank, Deliveroo and Darktrace have all seen their IPO and share prices collapse after recently listing in the UK. Some by 90% in just a few years. In fact it’s quite hard to think of recent IPO successes. Maybe WISE is one!
Some countries have banned shorting. I don’t think we in the UK have the appetite for banning this practice. However when shorters target recently listed companies by borrowing their stock to buy back at much lower prices destroying capital and shareholder value in the process, limiting recently floated companies from growing and benefiting from their listed status maybe it’s time for regulation?
We are not exactly creating a friendly growth focused environment for these recently listed companies to flourish in and grow from when huge profits can be made from shorting their stock. In such an environment wealth creation and growth opportunities in these companies is slowed down and lost, not nurtured and encouraged. I often see posts on crypto and the need for regulation but why do we not discuss shorting?
We will almost certainly see more companies delist to go private or relist overseas bypassing the UK stock markets if we let shorters, some hedge funds and fund managers destroy wealth and capital value by targeting these businesses. These companies have choices and will vote with their feet. They will either go private again or leave the UK and list elsewhere assuming they survive the short attacks.
Is it time to either ban or regulate shorting? Would this encourage more companies to list, stay and flourish in the UK?
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