Ashtead Group, a prominent industrial equipment rental firm, has announced its intention to shift its primary stock market listing to the United States, following a trend of major companies leaving London.

The company’s board emphasized that the US represents the “natural long-term listing venue” for Ashtead, anticipating that such a move would enhance its liquidity and visibility in its largest market.

Ashtead’s headquarters is located in the US, where most of its workforce is based. Last year, the American market accounted for 98 percent of its operating profits, primarily through the Sunbelt Rentals brand, which the company acquired in 1990.

Under the proposal, Ashtead plans to adopt the Sunbelt Rentals name as its primary corporate identity while maintaining a secondary listing in the UK. This transition is expected to unfold over the next 12 to 18 months, pending shareholder approval.

The potential exit of yet another high-profile company marks a troubling trend for London’s financial sector, which has seen a series of major firms, including Flutter, Smurfit Kappa, Ferguson, and CRH, relocate to the US in recent months.

Ashtead’s board expressed that after thorough consideration of the best location for its listing, they have determined that transitioning to a US primary listing, while retaining a UK listing within the international companies segment, serves the best interests of the business and its stakeholders.

This move is expected to align the company’s primary listing with the bulk of its operations, leadership, and workforce, broaden its appeal to US investors, and access the larger capital markets available in the US.

Founded in 1984 and listed in London shortly thereafter, Ashtead has achieved a market valuation of approximately £28 billion. Its main business involves renting and selling construction equipment, including excavators, cranes, and scaffolding. The company also caters to the film and television industries, provides security for events such as the Glastonbury Festival, and is the largest supplier of traffic cones in the UK.

In addition to the announcement regarding the listing change, Ashtead issued a warning indicating that its full-year profits would fall short of expectations, attributing a revenue growth forecast of only 3 to 5 percent to decreased used equipment sales, increased depreciation, and rising interest expenses.

During the six months ending October, pre-tax profits dropped by 4 percent to $1.197 billion, with a 2 percent revenue increase to $5.7 billion. Following the announcement, shares plummeted by 496p, an 8 percent decline, to 5,776p in early trading.

Brendan Horgan, CEO, commented that despite slower activity in local commercial construction markets due to prolonged high-interest rates, the robust demand from major projects and storm response initiatives in North America has more than compensated for these challenges. He expressed optimism that the local construction segment would recover as interest rates stabilize.