Proactive Investors - Kingspan (LON:KSP) appears to be the next high-profile construction firm to leave the London Stock Exchange after the board on Friday proposed to delist from the LSE pending shareholder approval.
Kingspan cited “negligible” trading activity on the LSE as the reason, while reaffirming its commitment to the primary listing on the main market of Euronext Dublin, “where the majority of share trading takes place”.
Fellow Irish building materials group CRH (LON:CRH) announced plans to leave the LSE in March in favour of a US listing.
“We have now come to the conclusion that a US primary listing would bring increased commercial, operational and acquisition opportunities for CRH,” the Dublin-based firm said at the time.
Kingspan’s announcement is part of a wider trend of London delistings, with gambling blue chip Flutter Entertainment (LON:FLTRF) (also an Irish firm) potentially the next one to go.
Kingspan’s Grenfell controversy
Kingspan became a source of controversy following the fatal Grenfell Tower fire in West London that killed 72 residents of the residential housing block.
A 2020 inquiry into the fire heard evidence that Kingspan used its Kooltherm K15 product in the flammable cladding system mounted on Grenfell Tower, despite knowing it did not meet the required fire standard.
Kingspan was accused of marketing its Kooltherm K15 foam insulation product as less flammable than it really was.
Philip Heath, a former technical manager for the group, apologised for saying that consultants who raised concerns about the combustibility K15 could “go f*ck themselves”.
Kingspan, which reported sales “approaching” €2 billion ($2.2 billion) for the first quarter of the year, said it would provide an update on the potential delisting process and timing “in the coming weeks.”