London’s capital markets could be set for another damaging hit as Tui Group’s shareholders prepare to vote on the company’s plans to delist from the London Stock Exchange.
Europe’s biggest travel operator, which is listed in both London and Frankfurt, said in December it was considering delisting from London’s premier index.
Two shareholder advisory groups have swung behind Tui’s top team, the advisory group Pirc and the US-based ISS. The ISS noted 77 per cent of Tui’s shares were listed on its German register last November, as opposed to 10 per cent in London.
If shareholders approve the plans, it would be seen as another blow to the already embattled bourse. Gambling giant Flutter completed a secondary listing in New York last year, with many believing it to be the precursor to a full relocation.
YouGov and Plus500, two staples of the London market, have also considered switching to list in the Big Apple.
“Both customer numbers and prices have been on the rise at Tui, leading to a strong increase in revenue at the full year mark,” Sophie Lund-Yates, lead equity analyst at Hargreaves Lansdown, said.
However, its share price has struggled due to a growing debt pile, which sat at $4.41bn (£3.49bn) as of September.
Forward looking bookings will be keenly on the minds of investors, who are concerned over whether demand will hold up through 2024.
“Next week we’ll get an idea if consumers are still prioritising travel and holidays. The group’s expecting demand to stay robust, with full year revenue anticipated to rise by at least 10 per cent this year,” Lund-Yates said.
“Last we heard, TUI was 56 per cent sold for winter bookings and we’d like to know where hotel occupancy and flight load-factors (a measure of how full planes are) landed for the season.”