Diversified Energy has announced plans to move its primary stock market listing from London to New York in another blow for the LSE.
The Alabama-headquartered firm says that move will boost liquidity and align more closely with its US-focused operations.
Founded in 2001, it has built its business by acquiring long-life natural gas and liquids assets and investing in operational improvements and environmental performance until safe retirement.
It first joined the London Stock Exchange in 2017 but now intends to shift its main listing to the New York Stock Exchange, while retaining a secondary UK listing.
The business is to follow in the footsteps of companies including FinTech Wise, FTSE 100 firm Ashtead Group and Paddy Power owner Flutter Entertainment, who have all made similar moves.
The change will be put to shareholders in a formal vote in the coming weeks, with the transition expected to complete before the end of 2025.
Diversified, co-founded by CEO Rusty Hutson Jr. (pictured), said the decision reflects the fact it is now ‘substantially a US business’, with its executive management team and headquarters based in Alabama, its entire workforce located in the US, and all assets and profits derived from its US operations.
As of June this year, more than 65% of its shares were held by US investors.
The board said the move offers a range of benefits, including greater trading liquidity in US markets, improved visibility with American investors, access to a broader pool of capital and positioning for potential inclusion in major US equity indices and exchange-traded funds.
It also highlighted the potential for simplified share ownership for employees and better access to top US talent.
The company added that it will retain its London presence through the International Secondary Listing Category (ESICC) to support UK and non-US shareholders.
The change will be enacted via a UK scheme of arrangement and requires approval by at least 75% of voting shareholders.
If passed, shares will continue to trade both on the NYSE and in London’s main market, but with the US becoming the group’s primary exchange.
The company’s shares are currently trading at 1,031p and it has a market cap of £796.66 million.