Indivior announces delisting from London Stock Exchange amid US focus
- Indivior has decided to delist its shares from the London Stock Exchange as of July 25, focusing on its Nasdaq primary listing.
- This move reflects the company's strategy to streamline operations and reduce costs related to its secondary listing.
- The decision is part of a larger trend of companies abandoning the LSE for US exchanges due to better trading conditions and liquidity.
In a significant move for multinational pharmaceutical company Indivior, the company has decided to remove its shares from the London Stock Exchange (LSE) after repositioning itself with a primary listing on the US’s Nasdaq in the previous year. This strategic delisting is set to take place on July 25. More than 80% of Indivior's revenue comes from the US market, necessitating a focus on enhancing trading liquidity and operational efficiency. The chairman of Indivior, David Wheadon, has expressed that this decision is aimed at optimizing their business model and reducing operational costs related to a secondary listing. The decision for Indivior to exit from the LSE follows a trend among companies moving to American markets, which have seen more robust liquidity and trading volumes compared to the LSE. EY's recent analysis revealed that 2024 marked the largest exodus of companies from the LSE since the global financial crisis in 2008. Indivior’s exit contributes to this larger trend and reflects ongoing difficulties faced by the LSE in attracting new listings while managing the departure of existing firms. Amid the challenges on the LSE, a contrasting development saw the spin-off of Anglo American’s platinum division, Valterra, which is poised for success on the London market. This spin-off represents a new investment opportunity as it transitions to operating independently with strong market expectations. In contrast, Indivior's exit signifies a setback for the LSE that is struggling to maintain its market position, especially in face of increased competition from US exchanges. Chairman David Wheadon reaffirmed the support from shareholders towards the initiative aimed at streamlining the company's operations. He believes that by fully concentrating on the Nasdaq listing, Indivior will better align its business structure with its main market revenue sources. The company's strategy resonates with a growing perception among international businesses that operational complexity can be mitigated by prioritizing more lucrative markets. The overall narrative emerging from Indivior's decision speaks to the broader dynamics impacting the LSE and illustrates how companies are adapting in a shifting global financial landscape.