Ryanair has confirmed it is delisting from the London Stock Exchange, citing steep admission fees, low level of share trading and post-Brexit ownership rules as factors in its decision. The airline’s final day on the London exchange will be December 17th, after which the company will be listed exclusively on the Irish Euronext Dublin exchange.
Ryanair confirms London Stock Exchange delisting
Ryanair is to delist from the London Stock Exchange (LSE), with Brexit changes playing a significant role in its decision. The airline had indicated its intentions to do so earlier in the year when releasing if half-year results for 2021.
“As indicated at our interim results, and following subsequent shareholder engagement, Ryanair has decided to request the cancellation of London listing as the volume of trading of the shares on the London Stock Exchange does not justify the costs related to such listing and admission to trading, and so as to consolidate trading liquidity to one regulated market for the benefit of all shareholders.”
Ryanair’s final trading day on the LSE will be on December 17th. The airline said it had notified the UK’s Financial Conduct Authority and would be officially delisted at 08:00 on December 20th.
The airline has cited changing ownership and control rules after Brexit as a big factor in its delisting. EU rules require airlines to be majority-owned by EU nationals, with Ryanair even asking some UK investors to sell shares to keep in line with regulations.
This included the sale of roughly one million shares in September bought by non-EU investors, primarily British, since January. Last month, Ryanair CEO Michael O’Leary revealed that, with UK shareholders no longer in the EU, Brexit had reduced EU ownership of the airline below 50%.
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Primary listing on the Euronext Dublin
After delisting from the LSE, Ryanair will be listed exclusively on the Ireland-based Euronext Dublin.
“Following the cancellation of the London listing, the company will continue to have a primary listing on the regulated market of Euronext Dublin, which offers shareholders the highest standard of protection, including compliance with the UK corporate governance code.”
The airline commented that the low level of share trading did not justify the costs of remaining on the London exchange.
Shares fall by 2.6%
After announcing it will delist from the LSE, shares in Ryanair fell by 2.6%. With a valuation of around £18.4 billion ($24.5 billion), Ryanair is one of the largest airlines listed on the London exchange.
Sophie Lund-Yates, equity analyst at Hargreaves Lansdown, commented,
“There are some signs that Ryanair will emerge from the pandemic stronger than it went in. Ryanair’s an early mover in the recovery, snapping up market share, and that could be a reason for long-term optimism.”
The airline is rebounding well from the pandemic, recently posting its first quarterly profit since the pandemic began. As Simple Flying explored earlier this month, its fleet is in good shape. Ryanair has also rapidly expanded its routes over the winter season, introducing 250 routes in just 31 days.
Do you think Ryanair has made the right decision to delist from the London Stock Exchange (LSE)? How do you see the next year playing out for Ryanair? Feel free to share your insights in the comments.