Ad tycoon Sir Martin Sorrell has said he is considering a New York listing after S4 Capital’s underwhelming London performance.
The advertising tycoon and former WPP boss wrote in The Times: “When we started S4 Capital in 2016, I did look at the US market and Spacs, but the entry costs then were too expensive — although it’s gone the other way now, given the oversupply.”
However, he added that now “we would probably get a better valuation” on Wall Street, and flagged plans to list shares in the US.
This is rooted in the idea that tech companies are valued more highly across the Atlantic, and Sorrell criticised government plans to toughen reporting standards for listed and Aim-listed firms. He said the London market still valued banks and miners more highly rather than innovative tech.
Back in November, S4 said like-for-like revenue was up 56 per cent in the third quarter to £178m. It also announced plans to double in size by 2024.
S4 Capital started trading in London in 2018, and its share price has nearly halved from a peak in September.
The shares closed on Friday at 478.5p, valuing the company at around £2.8bn.