Dec 29, 2024, 9:50 PM
Dec 29, 2024, 8:59 PM

Issa brothers plan £13bn float for EG Group in the US, threatening London

Highlights
  • The Issa brothers are planning a potential £13 billion listing for EG Group, their petrol station business.
  • The move represents a shift away from the London Stock Exchange towards a US market debut.
  • If successful, the listing would signify a major financial achievement for the brothers and reflect changing preferences in market listings.
Story

In a significant development within the financial markets, the Issa brothers, Zuber and Mohsin Issa, along with their private equity partner TDR Capital, are exploring the possibility of listing their petrol station empire, EG Group, on a stock exchange in the United States. This potential listing, projected to be valued at approximately £13 billion, comes as part of a broader strategy as the company seeks to capitalize on its strongest market, which is the United States. Despite being headquartered in the UK, the brothers' decision to pursue a US listing reflects a growing trend among businesses that are increasingly drawn to the financial opportunities offered by Wall Street. The proposed timing for this stock market debut is being set for next year, 2025, indicating that plans are already in the preparatory stages, including discussions with banks and advisors to facilitate this floatation. This move has implications for the London Stock Exchange as it further signifies a shift in preference by British companies toward US markets for IPOs, particularly for sectors such as petrol and energy where investor appetite in the US remains robust. If the listing goes ahead as planned, it would not only represent a major payday for the Issa brothers but also highlight how the landscape of financial markets is evolving, marking a considerable blow to London’s status as a preferred destination for wealth generation and business growth. As noted, this development is still in its early stages, meaning that no final decisions have been reached at this point, but as the company has already established itself successfully in the US market, the listing seems to be a logical next step for the Issa brothers. The overall sentiment indicates that the decision is geared towards harnessing the market dynamics present in the US, where EG Group earns the majority of its profits.

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