The spread-betting empire set up by millionaire Brexit supporter Stuart Wheeler could quit London in a blow to the City.
IG Group, which started life as Investors Gold Index in 1974, has launched a ‘strategic review’ that could see it shift its domicile and listing overseas – most likely to New York.
That would further damage the City’s reputation as a financial centre amid an exodus of companies from the stock market through takeovers and defections to other exchanges.
The review was announced ahead of IG’s promotion to the FTSE 100, with its shares joining the prestigious blue-chip index on Monday, having risen 50 per cent in the past year.
City commentator David Buik said: ‘Stuart Wheeler will be turning in his grave seeing his pride and joy head west for greater largesse.’
But he said a move ‘makes sense’ given ‘betting in the US has become a hugely important market, which has expanded dramatically’ while operators in the UK face ‘punitive taxation’ under Labour.
Review: IG Group, which was set up by millionaire Brexit supporter Stuart Wheeler (pictured), could shift is domicile and listing overseas
IG, the world’s first spread-betting firm, was set up by Wheeler to allow investors to speculate on gold without buying physical bullion as it was restricted by UK exchange controls at the time.
It grew to become one of the country’s largest trading groups and joined the London stock market in 2000 – becoming the first spread-betting company to do so – having expanded from gold into other areas including sports betting and foreign exchange.
It is now valued at £4.75billion, earning it a place in the FTSE 100 in the latest reshuffle. Shares rose 6.3 per cent, or 85p, to 1445p yesterday.
Wheeler was a legendary figure in the City and keen gambler who played bridge with Omar Sharif and backgammon with Lord Lucan.
He also became known for his political activism, donating to the Conservative Party and then the UK Independence Party before becoming UKIP treasurer and the co-treasurer of the Vote Leave campaign ahead of the Brexit referendum.
Married with three daughters, he died in 2020, aged 85.
Any move from London could see IG head to the US as it seeks to tap into fast-growing markets and the prediction betting craze.
The company’s UK and Ireland managing director, Michael Healy, said that the US would be an option, describing it as ‘a very fast-growing and highly dynamic market’.
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