Ashtead announces major share buyback and prepares for US market move

FTSE 100 heavyweight Ashtead has announced a $1.5bn (£1.2bn) share buyback programme following its decision to transfer its primary listing to the US.

The construction equipment company disclosed in a stock exchange announcement today that it had struck a deal with Barclays to repurchase up to 65m shares over the next 18 months, as reported by . With a market capitalisation of £22.3bn, the planned buybacks represent just over five per cent of Ashtead's share capital, although the firm is authorised to acquire as much as 15 per cent.



The move comes after Ashtead declared yesterday that the US market is its "natural long-term listing venue" and that it intends to relocate its primary listing within the next 12 to 18 months. Following the news of abandoning its London listing, the company's share price took a significant hit, having declined more than 20 per cent since the beginning of the week. Ashtead, which ranked as the 25th largest company on the FTSE 100 at the time of the announcement, joins a growing list of companies that have opted for foreign listings this year, with a staggering £107bn having exited the Stock Exchange since the start of 2024.

Despite CEO Brendan Horgan's previous endorsements of Ashtead’s commitment to London last year, the 77 year old company now generates approximately 98 per cent of its earnings from North America. "The sole purpose of these share purchases is to reduce the company’s share capital," Ashtead stated, clarifying the rationale behind the buyback initiative..