Castore could snub London and float overseas as CEO talks up ‘global ambition’
The London Stock Exchange needs to offer something different if it’s going to convince Castore to float in the UK, its co-founder has said.
Tom Beahon, speaking on an upcoming episode of City AM‘s Boardroom Uncovered podcast, said it would be “shame” if the brand didn’t end up choosing London and instead completed an initial public offering (IPO) overseas.
While maintaining his previously stated line that Castore has “no immediate plans” to list, as one of the highest-valued private companies in the UK, it’s an enviable talking point.
Listing in London is not ‘ultimate end goal’ for everyone anymore
Speaking on the episode, co-CEO Beahon said: “As a British entrepreneur, someone that founded a company in the UK in the North of England, it would be brilliant to one day be able to list in the UK.
“But it’s very hard for me to look at the UK market right now and say that is the optimal next step for my business.
“I don’t think there’s going to be any single change that is made that alters that impact or the that makes it more attractive. It will take time.
“But at the moment, if I look at what’s going on in the US markets, if I look at the private equity markets, if I look at some opportunities we have in the Middle East, in the Far East, in Asia, it’s very hard for me to look in the mirror and say that the UK is the best place for me to grow my business and raise capital.
“I don’t have all the answers. The fact that we’re having a conversation is a great start, but the London Stock Exchange should not take for granted that the ultimate end goal for British entrepreneurs is to list in this country, because I don’t think it is any more.”
Castore wants to be £1bn turnover business
Beahon also said that “the status quo clearly is suboptimal” and the London Stock Exchange and the government need to do more to make it more attractive for companies to list in the UK.
He added: “Some changes will need to be made because it would be a shame if Castore was the list outside of the UK.
“I’ve got a fiduciary and moral duty to shareholders to optimise the value of the business.
“If you have a global ambition, as we do, particularly in sports where Castore all operates, at some point you need to penetrate the US.
“You can’t be £1bn turnover company – which is what I would love to get us to – in sports without going into the US. So that market will always be interesting for us.
“Equally, if I look at what’s happening in the Middle East and the investments that are being made in sports from in Qatar and Saudi and more broadly across the UAE, if I look at some of the deregulation and changes that are happening in markets like India and China, some very exciting things are happening.
“The world is becoming evermore interconnected. That is not going to slow down with the ongoing penetration of AI.
“Unless you as a country or as a stock exchange are offering something that is better than other people elsewhere in the world, you’re not going to win.”