CA - Shell: A NYSE Listing Won't Be A Game Changer

2024-04-21 13:21:22 ET

Summary

• Shell has recently mulled a NYSE listing to help close the valuation gap with its American peers.
• This may help marginally with liquidity but Shell's discount seems more related to its capital allocation strategy.
• Investors may be penalizing Shell for the greater focus on renewables rather than the London listing.

Investment thesis

Shell plc ( RYDAF ) made headlines recently when CEO Wael Sawan mulled a New York listing as potential move to close the valuation gap with American peers like Exxon ( XOM ):

By mid-2025, if the valuation gap remains, then Sawan made clear nothing is taboo, including switching the listing to New York.

For further details see: