(Reuters) – British equipment rental company Ashtead (LON:) is proposing to move its primary listing from London to New York, it said on Tuesday, also warning of lower annual profit due to a frail commercial construction market in the United States.
Ashtead, which makes most of its profits in the U.S., said it would discuss the proposal with shareholders and expected the plan to be implemented within the next 12 to 18 months.
It said it would maintain its British listing in the international companies segment.
Founded in England, Ashtead has been listed on the London Stock Exchange since December 1986 and entered the U.S. market with the acquisition of Sunbelt Rentals in 1990. In the early 2000s, it entered into several transactions in the U.S. and became one of the largest rental companies equipment There.
The group, which rents equipment in the construction, repair, entertainment and emergency response segments, is the second largest equipment rental company in the U.S., with 1,215 stores in all 50 states. The region generates 86% of its income.
Ashtead joins a growing list of companies leaving European listings for US markets, where valuations may be higher.
The company said adjusted pre-tax profit fell 2% to $682 million for the three months ended Oct. 31, hit by higher depreciation costs and lower used equipment sales amid weakness in the North American commercial construction market.
Half-year pre-tax profit fell 4% to $1.26 billion, slightly below the company’s analyst consensus of $1.29 billion.
Ashtead, which operates under the Sunbelt Rentals brand, also said it would launch a share repurchase program worth up to $1.5 billion over the next 18 months.
