WPP Considered Going Public in New York, Sources Suggest
According to reports, WPP, the British advertising giant, had considered going public in the United States by listing on the New York Stock Exchange (NYSE) in recent months. Although the company has since decided not to pursue the listing, sources suggest that it had explored the option as part of a strategic review.
As the largest publicly traded advertising holding company in the world, WPP has faced significant challenges in recent years, including declining organic growth and pressure from digital upstarts. The company has been under pressure from activist investors and its largest shareholder, Martin Sorrell, who resigned as CEO in 2018.
Rumors of a potential New York listing surfaced earlier this year, with some speculating that WPP might choose to dual-list on both the London Stock Exchange (LSE) and the NYSE. This move would have provided the company with increased liquidity and access to new sources of capital, as well as exposure to a broader range of investors.
While WPP ultimately decided against the listing, the company is not ruling out other strategic initiatives aimed at reinvigorating its growth trajectory. In its recent quarterly results, WPP reported a significant increase in revenues, driven largely by the consolidation of its struggling operating companies and cost-cutting measures.
Analysts have interpreted the company’s decision not to pursue a US listing as a sign that it is focusing on rebuilding its internal strengths rather than relying on a costly and potentially dilutive listing. WPP’s CEO, Mark Read, has emphasized the importance of integrating the company’s acquired assets and implementing a new, more digital-centric strategy to drive growth.
WPP’s potential listing on the NYSE had sparked intense interest among analysts and investors, with some predicting a valuation of over $20 billion for the company. However, with the decision not to proceed, WPP will instead focus on executing its growth strategy and leveraging its substantial resources to drive long-term profitability.
In the absence of a US listing, WPP is expected to remain listed on the London Stock Exchange, where it has a strong following among investors and a liquid trading market. While the company’s decision to forego the New York listing may have been seen as a setback by some, it appears to be focused on rebuilding its foundations and capitalizing on new growth opportunities rather than pursuing a high-profile listing.
