UNITED Drug will delist from the Dublin stock exchange next month and move its primary listing to the London Stock Exchange, the latest in a long line of Irish companies to move across the Irish Sea.
The drugs distribution and packaging services company, which now generates more than two thirds of its profits outside Ireland, said last month it was considering leaving the ISEQ stock market. It confirmed yesterday it would move on October 3. United Drug expects to be included in the FTSE All-Share index in December.
"We believe that the changes will increase the group's attractiveness to a wider international investor base and are a natural progression for United Drug," CEO Liam FitzGerald said. "These changes will have no impact on the business operations of United Drug and United Drug will remain headquartered, incorporated and tax-resident in Ireland."
The stock exchange is struggling as blue chips such as CRH and Elan moved their primary listing from the ISEQ Overall Index to London and other former blue chips such as the banks are ejected. Some heavyweights such as Kerry and Ryanair retail their primary listing in Dublin.
"It is clear that this decision by United Drug is driven by the rules for inclusion in the FTSE UK Index Series, which require the majority of trading in a constituent company's shares to take place in the UK," the stock exchange said yesterday.