EG Group Pursues US IPO, Highlighting London's Stock Market Challenges
The petrol station giant's planned New York listing underscores a trend of British firms seeking opportunities abroad, potentially valuing the company at £6.85 billion.
EG Group, the petrol station empire founded by the Issa brothers, has filed plans for an initial public offering (IPO) in the United States, signaling a potential valuation of approximately £6.85 billion. The company has submitted documents to the U.S. Securities and Exchange Commission for a listing that could raise around £760 million from investors. This move, potentially occurring within the next two months, marks the latest instance of a British firm opting for a New York listing over London.
The Bury-founded company, which began when Mohsin and Zuber Issa purchased their first petrol station in 2001, has increasingly focused its operations and strategic direction towards the U.S. over the past few years. EG Group now operates Cumberland Farms, a chain of 1,500 convenience stores and petrol stations in the United States, and there is a possibility the IPO could occur under this name. The company no longer owns petrol stations in the UK, having sold most of them to Asda, a business co-owned by EG's co-owner TDR Capital and Mohsin Issa. EG Group's global headquarters is now based in Charlotte, North Carolina.
This decision follows a similar path taken by Derby-based aerospace firm Doncasters, which last week filed for an IPO in New York with the aim of raising £567.5 million. Doncasters, established in 1778, has manufacturing facilities across England.
The trend of British companies seeking listings in the U.S. occurs amid a broader pattern of overseas acquisitions of UK firms. Companies such as Schroders, Beazley, and Intertek have agreed to foreign takeovers, and EasyJet recently fended off an offer from a U.S. group.
Mohsin and Zuber Issa each hold a quarter stake in EG Group, while private equity firm TDR Capital, which is also involved with Asda, owns approximately 50 percent of the company. According to Lale Akoner, global market strategist at Etoro, EG Group's potential U.S. IPO reflects a growing strategic approach by companies in choosing listing venues. Akoner noted that while London remains a significant financial center, companies with international operations are increasingly selecting locations that best align with their investor base, business narrative, and valuation aspirations.