Shell is considering leaving the London Stock Exchange

Shell’s chief executive says the oil and gas company may pull out of its “undervalued” London listing.

Vael Savan, who heads the biggest company in the FTSE 100, said the London Stock Exchange was an “underrated place” as he joined global CEOs complaining about the capital’s share market.

Shell, he said, was a “fantastic” investment opportunity because of its undervaluation Interview with Bloomberg agency.

“I will continue to buy these stocks and continue to buy these stocks at a discount,” he added.

Savan is about to embark on a so-called “sprint” to improve the company’s competitiveness and profitability.

The firm is undervalued compared to its Wall Street-listed peers.

“If we’re working through a sprint and we’re doing what we’re doing and we’re still not seeing the gap closing, we have to look at all the options.”

Shell’s exit will be a major blow to the London Stock Exchange as new IPOs have dried up and some firms have opted out of New York listings.

According to EY, 23 companies listed in London last year, raising around £1bn, the lowest level since the financial crisis.

British chipmaker Arm’s move to float in New York despite a huge charm offensive from ministers and regulators was also seen as a major setback for the city.

The Treasury and regulators have attacked the London Stock Exchange to boost its appeal by overhauling listing rules and channeling more capital into the market from retail investors and pension funds.

via CityAM

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