Brothers Mohsin and Zuber Issa are reportedly considering a significant £6.7 billion stock market listing in the United States for their petrol forecourts business, EG Group. This move, expected later this year, would involve talks with major US banks next week and could represent another blow to London’s financial market.
Key Takeaways
- EG Group, co-owned by the Issa brothers and TDR Capital, is exploring a US IPO.
- The potential listing could be under the name Cumberland Farms.
- This decision follows a trend of companies opting for US markets over London.
US Listing Considerations
EG Group, which has grown into a global fuel retailing giant with an expanding food service offering, is reportedly planning to hold discussions with prominent US banks such as Bank of America, Goldman Sachs, JP Morgan, and Morgan Stanley. The potential listing in New York, possibly under the name Cumberland Farms, is anticipated to take place later this year. The Issa brothers each hold approximately 25 per cent of EG Group, with TDR Capital, the owner of Asda, holding around 50 per cent.
A Blow to London’s Market
This potential US listing is seen as another setback for the London stock market, which has experienced an increasing number of companies either postponing their listing plans or exiting the market altogether in recent years. Firms are increasingly looking to capitalise on stronger foreign markets. Examples include Indivior cancelling its secondary listing on the London Stock Exchange and AstraZeneca approving a direct listing on the New York Stock Exchange to access a deeper capital pool.
EG Group’s Global Expansion
EG Group has transformed from a single petrol station into a multi-billion-pound business, operating thousands of forecourts across the UK, Europe, North America, and Australia. The company employs around 33,000 people across approximately 4,300 sites, serving about one billion customers annually. While founded in Britain, bankers believe a US listing is a more logical step, especially as the US is now the firm’s largest single market. The company’s global headquarters is also relocating to Charlotte, North Carolina. In recent times, EG Group has reduced its borrowings by divesting assets, including the majority of its UK sites to Asda, which the Issa brothers acquired in 2020.
EG Group has declined to comment on the reports.
