TotalEnergies has confirmed its plan to list in New York as part of its strategy to expand its financial market reach in the United States. The announcement was made by its CEO, Patrick Pouyanné, who emphasized that this move does not imply a change of primary market but aims to improve accessibility for North American investors. Currently, 50% of the group’s institutional shareholders are based in the United States, reinforcing the relevance of this initiative.
A complementary listing, not a dual listing
Unlike some multinational corporations that maintain distinct share classes across multiple markets, TotalEnergies has opted for a simultaneous single-class listing in both Paris and New York. This strategy ensures that the stock price remains aligned between the two exchanges, adjusted for exchange rates.
TotalEnergies’ approach differs from Shell’s, which between 2005 and 2022 operated with two separate share categories on the London and The Hague exchanges before merging them. Similarly, Rio Tinto continues to function with a dual structure between London and Sydney, whereas TotalEnergies seeks to simplify investor access without introducing additional complexity.
The limitations of ADRs for American investors
TotalEnergies is already present in the U.S. market through American Depositary Receipts (ADRs), which currently account for approximately 9% of its capital. These instruments allow American investors to purchase foreign shares in a format regulated by the Securities and Exchange Commission (SEC).
However, ADRs are often considered costly by institutional investors. Financial intermediaries impose additional fees, including banking commissions from firms such as JP Morgan in New York and BNP Paribas in Paris. To address this issue, TotalEnergies plans to convert these ADRs into ordinary shares to improve liquidity and reduce acquisition costs.
A valuation strategy to close the gap
Another major objective of this listing is to bridge the growing valuation gap between European and American companies. In 2024, the U.S. market demonstrated greater resilience compared to its European counterpart, particularly amid economic uncertainties in the eurozone.
More than 100 European companies have opted for listings outside the EU to benefit from better valuation conditions. By strengthening its presence in the United States, a key market for the energy sector, TotalEnergies aims to capitalize on this trend.
Paris remains the group’s main financial hub
Amid political concerns, Patrick Pouyanné reaffirmed that Paris would remain TotalEnergies’ primary stock exchange and that the company’s headquarters would stay in France. The group does not plan to modify its legal structure or relocate its decision-making center.
This move is therefore strictly financial, aimed at enhancing TotalEnergies’ competitiveness on the global market. By increasing the visibility of its shares in the U.S., the company hopes to attract a higher volume of institutional investments and optimize its market valuation.
