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James Ferguson, capital markets partner at Deloitte commented: “Analysis of the FTSE 100 this week will undoubtedly highlight the increasing internationalisation of the UK stock market. Despite the recent deferral of Ferrous Resources’ listing we expect to see more international companies move their primary listing to London, and for the very largest of those, the opportunity to join the FTSE 100 blue chip index.
“Of the new entrants a number have their heritage outside the UK such as Kazakhmys, Vedanta Resources, ENRC, Randgold Resources, Investec and Fresnillo. These companies are expected to be joined by Barrick Africa and Essar Energy this week. There is clearly a trend developing, and we expect the pace of internationalisation to increase over the coming years. Having already seen two new companies come to market in the first six months of the year, we would not be surprised to see more coming over the next six months.
“There is a reputational kudos to having a primary listing in London and being part of a blue chip index. Similarly, there are certain sectors such as natural resources where London is the pre eminent market. Companies are therefore attracted here, not just because of the perception that the UK has a less onerous regulatory environment, particularly in comparison with the US and the Sarbanes-Oxley Act, but also to be measured against their global peers, who also chose London.”
