Proactive Investors - Watches of Switzerland Group PLC (LSE:LON:WOSG) is being pressured by activist investor Gatemore Capital Management to move its primary share listing to the US.
Gatemore, in a letter, said that a US listing would better reflect the company’s value and unlock growth opportunities.
Echoing a common sentiment in the London capital markets, Gatemore argued that shifting the listing would allow WOSG to access deeper capital pools and long-term investors, while increasing liquidity.
Gatemore also highlighted WOSG’s substantial growth potential in the US, where it is rapidly expanding its market share.
Previously, Gatemore had called for WOSG to implement a share buyback programme in order to increase what it still sees as an inadequate market valuation.
“In order for WOSG to fully unlock the value of its stock, we are now calling for the company to move its primary listing to the US, a key growth market around which WOSG is already pursuing an ambitious growth strategy,” said Gatemore.
Liad Meidar, managing partner at Gatemore, added: “Watches of Switzerland has established itself as the leading retailer of premium watches. It is an exceptional business, providing customers a premium experience and boasting longstanding partnerships with some of the strongest brands in the world.
“With a clear leading position in the UK market, the company is now well positioned to unlock additional growth in the massive and underpenetrated US market.
We are impressed with the track record and ambition of the management team, and we call on them to consider a listing in the US to fulfil WOSG’s potential and help unlock the intrinsic value of this business.”
WOSG shares are down 70% from their 2021 peak, when record-high luxury watch prices began to tumble amid the global cost-on-living crisis.