International Paper vows to list on London Stock Exchange as Superdry outlines plans to leave

By Louis Goss

The Memphis, Tenn., company's plans to list on the London Stock Exchange would be a major win for the troubled market following a series of high-profile exits

International Paper on Tuesday outlined plans to seek out a listing on the London Stock Exchange in a major win for the troubled market following a series of high-profile exits, with Superdry the latest London-listed company to announce its plans to leave.

In a statement, International Paper called on investors to support its GBP5.8 billion ($7.2 billion) takeover of British packaging company DS Smith. The U.S. company said it also intends to pursue a secondary listing on the LSE alongside a primary listing in New York.

International Paper's (IP) London listing would fly in the face of current trends that have seen a raft of top companies either delist from the LSE or avoid the stock market altogether over concerns around low valuations and a lack of liquidity on the troubled bourse.

The listing would see the newly combined company, which is set to achieve annual sales of around $28.2 billion, become a significant component of the LSE - even though it will be excluded from the FTSE 100 index UK:UKX due to having its primary listing in the U.S.

International Paper's statement comes on the heels of English clothing seller Superdry's (UK:SDRY) announcement on Monday that it is set to leave the LSE, outlining a major restructuring plan aimed at reversing a long-term decline in its revenues.

In a statement, Superdry said its plans to leave the LSE will see it "benefit from significant cost savings associated with being listed" while also allowing it to "implement its turnaround plan away from the heightened exposure of public markets."

Earlier this year, German travel operator Tui (UK:TUI) (XE:TUI1) called on investors to vote in favor of plans to delist the company from the LSE, with a view to boosting the liquidity of its shares by shifting its primary listing to Frankfurt.

This followed British microchip designer ARM Holding's (ARM) decision to hold its initial public offering in New York instead of London last September, despite far-reaching efforts by the British government to persuade it to float in the U.K.

The exodus of top companies from the U.K.'s main stock exchange has led some analysts to argue that the LSE is now in a "doom loop" that is being driven by investors pulling their money out of British stocks.

In November, London Stock Exchange Group CEO David Schwimmer blamed a hostile U.K. media environment and British "compensation practices" for the string of companies exiting the LSE.

-Louis Goss

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04-16-24 1057ET

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