TotalEnergies wants to list on the New York Stock Exchange. Goodbye Europe?
TotalEnergies CEO Patrick Pouyanne revealed plans for a potential listing in New York during an analyst briefing on Friday, citing a desire to attract a larger share of U.S. investors. With 47% of institutional shareholders and 39% of global investors based in the United States, TotalEnergies aims to strategically position itself in the American financial landscape.
While a final decision awaits the deliberations of the Board of Directors, Pouyanne underlined the importance of adapting to investor preferences, especially in light of the market dynamics that influence the performance of the stock.
“There is a reason” to move the listing, Pouyanne told Bloomberg's Javier Blas in an interview. “It's not about emotions. It's about business. We are faced with a situation where European shareholders either sell or hold, and US shareholders buy. So what's best for US shareholders? Do they prefer stocks to be listed primarily in New York or Europe? I believe that when you ask the question, you have the answer."
Pouyanne added that if Total were to list in New York, its headquarters would remain in Paris, leaving its operations apparently unchanged.
The listing proposal, if pursued, could modify TotalEnergies' current presence on European stock exchanges, as well as erase it. Pouyanne indicated that the company will present a full assessment to the Board of Directors by September, signaling a proactive stance towards improving shareholder value. Against the backdrop of recent market fluctuations, influenced by concerns over economic growth and inflation trends, TotalEnergies' strategic move underlines its commitment to promoting investor confidence and maximizing shareholder returns.
As discussions unfold, industry observers are waiting to hear about TotalEnergies' potential dual listing strategy and its implications for global market dynamics.
The French energy giant released first-quarter earnings on Friday, which fell 22%, largely due to lower natural gas profits. Total also warned that rising crude prices could drag down refining margins in the second quarter. This comes after a profitable 2023, with the company's return on average invested capital reaching 19% – and spending $17 billion on new projects, mostly oil and gas.
Today, at the opening after the news, the cob is doing well, growing
It could be the positive response to entering a larger market, which however also risks changing the structure of investors.
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The article TotalEnergies wants to list on the New York Stock Exchange. Goodbye Europe? comes from Economic Scenarios .
This is a machine translation of a post published on Scenari Economici at the URL https://scenarieconomici.it/totalenergies-vuole-quotarsi-sulla-borsa-di-new-york-europa-addio/ on Mon, 29 Apr 2024 10:13:04 +0000.