EurOil: Shell mulls listing move from London to New York

Shell is considering moving its primary stock listing from London to New York, its CEO Wael Sawan told Bloomberg this week, citing the undervaluing of its shares.

“I have a location that clearly seems to be undervalued,” Sawan said, noting how Shell’s shares were worth less than those of international peers listed in New York such as ExxonMobil and Chevron. The comments have sparked concerns in London that other major listings such as BP and Glencore could make a similar move. 

Shell is on a 10-quarter “sprint” to slash its operating costs, he said.

“If we work through the sprint, and we are doing what we are doing, and we still don’t see that the gap [in valuation] is closing, we have to look at all options,” Sawan said. “You can worry about the gap or you could buy the gap. I will keep buying back those shares and buying back those shares at a discount.”

This is a “fantastic investment opportunity,” he said.

Shell would need the approval of shareholders owning over 75% of its stock to switch its primary listing. A relocation has been discussed for some time, since the company relocated its headquarters in 2022 from The Hague in the Netherlands to London.

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