Ocado shareholders push for switch from London to New York stock market

The newspaper reported that “face-to-face” conversations have been held with investors in the past few weeks, during which the possibility of switching Ocado’s listing to the US was discussed at length.

The potential move has been further influenced by the collapse of Ocado’s share price from record highs during the pandemic. 

The company was once worth more than Sainsbury’s, Marks & Spencer and Morrisons combined as consumers turned to online shopping.

Its market cap now stands at less than £3bn, down from £22bn in September 2020.

City sources told The Sunday Telegraph that Ocado chief executive and co-founder Tim Steiner could be “persuaded” to move to the States as some investors see it as a loss-making online grocer rather than a technology company.

The shift to the US would cause another blow to an already troubled UK stock market, with many companies moving abroad in the belief they will command higher valuations elsewhere.

However, retail industry experts point out that one obstacle to Ocado moving to New York is the delivery partnership it has with M&S.

Ocado has also previously threatened to sue M&S after accusing it of failing to honour a final one-off payment linked to performance.

Other insiders believe M&S could try to buy Ocado out of the agreement, leaving the online platform to focus on the technology aspect of the business.