The Telegraph: Shell is considering leaving the London Stock Exchange
UK oil and gas company Shell is considering withdrawing its shares from the London Stock Exchange and conducting an initial public offering in New York. This was reported by the British newspaper The Telegraph, citing a statement by the company's CEO Wael Sawan. In his opinion, Shell shares are currently undervalued by investors. Mr. Sawan noted the difference in the capitalization of Shell ($230 billion) and its competitors, such as Exxon Mobil ($480 billion) and Chevron ($300 billion), whose shares are traded in New York.
According to The Telegraph, The London Stock Exchange has traditionally been popular among companies in the oil, gas and mining sectors, but recently, due to increasing investor attention to ESG (environmental, social responsibility, governance) aspects, such companies are increasingly choosing other listing options. For example, last year Glencore, a London-listed mining company, spun off its coal division into a separate company and floated shares in New York.
In 2021, Shell itself moved its tax residence from the Netherlands to the UK and abolished the dual share capital structure, combining the two types of shares into one, which is now traded in London. Previously, part of the company's shares fell under the British tax system, and the other under the Dutch one, with the former not subject to tax, and the latter subject to a 15 percent tax.