US listings often fail to boost European companies’ valuations

European companies that have added an American list often found an increase in their assessments, in a challenge to the demands of some executives that the presence of the stock market in New York is a certain path of high stock prices.

Analysis of 12 companies listed in the Europeans have added US lists since 2016-including Ferguson and CRH and Entertainment is a flutter – I found that in half of the cases, the assessments decreased, while there were no number in the number of analysts after the shares. However, two -thirds of companies have more liquidity in their shares after this step.

“The basic thesis you move to the United States and improve your share price is not correct,” said Richard Werner, a partner at the BCLP law office. “It is definitely not clear like that.”

European companies and their investors have been seduced before The high stock market in the United States In recent years, they believe that-despite the sale of the last markets-they will have the highest profit complications there.

The UK’s intermediary TP ICAP said last week that he was planning this Listing her data work in New YorkWhile Glencore, the runway in London in February, said it was retreating whether other places-including the United States-are “more suitable” for trading its shares, in a possible major blow to the historical situation in London as a mining-finance center.

London construction group Ashtead Plans “The advantages of the primary menu in the United States on other markets. It has become more clear in the past few years,” said its main list for New York and its CEO. British ads group WPP “I looked at” Moftah, while the director of French assets chewing He also thinks about this step.

FT results come at a time when European policy makers are trying to revive local markets and encourage companies to stay at home. In the United Kingdom, the organizers Reform rules For the listed companies in an attempt to make London more competitive.

The companies analyzed by FT added all the new US quotes – either an initial list or an additional list – while maintaining its European menus.

Ferguson and the UK -based UK are among the groups that have added US lists in recent years, as well as small companies such as Dry Bulk Corpator Himalaya Shipping and Pharmaceutical Indivio.

FT found the Irish building materials collection CrhIndivio and Shiping Okeanis Eco Tankers was the only companies that enjoyed lifting in all three analyzed measures – evaluation, trading volumes and follow -up analysts – while the Berford Capital and the Spanish Infrastructure Group in Ferrovial were not useful to any of them. Others fell into at least one.

Half of the analyzed companies in New York were lower than they were in the local market before this step, as smaller stocks arrived. On average, the price/profit rate of 12 months for the smaller companies of less than $ 10 billion in the market value-is 7 percent less in New York, while large companies were about 1 percent.

“For smaller or medium -sized European companies, a secondary list in the United States may not generate attention among American investors who look at the largest companies where the brand recognition is more global,” said Apostolus Tomadakis, head of research at the European Capital Markets Institute.

However, CRH has an increase in a sustainable evaluation from the New York list. The average P/E of 12 times has increased in 18 months before converting its basic list to the United States to 15 times on average in 18 months since then.

But Flter, which added an American quote in January 2024, and then made New York its basic list, did not offer any improvement – the P/E ratio decreased from 29.8 times in the United Kingdom to 29.1 times.

The same applies to the previous Ferguson and Ferrovial, with the average US assessments of the United States 9 percent and 11 percent respectively after the movements of the United States.

The addition of an American list can be an expensive step – Werner said in BCLP that the cost can range from about 500,000 pounds to more than a million pounds, depending on the volume of legal services, accounting and investment used, in addition to the fees that the stock exchanges charge. Companies also have additional and continuous reports to maintain the list that can coincide with tens of thousands of dollars per year.

“There is a lot of direct costs and indirect costs,” said Kim Pal, the financial manager of swelling, who added a list on the Nasdaq Stock Exchange in 2017.

FT analysis has not taken into account factors such as company profit publications, organizational changes or transformations in sector assessments, which can all affect the company P/E for the company.

Most companies have benefited from larger liquidity – the ease with which stock trading can necessarily move the price. Big companies have seen a boost about four times on average when comparing their shares listed in Europe with their American shares, while small companies witnessed about 45 percent.

CRH is now seven times higher in New York. But Ferrovial has fallen there: about 37,000 shares are traded daily in the United States, compared to more than 1 million in Europe in 10 months before the American move.

This was “as expected with the new NASDAQ menu,” Ferrovial told FT, adding that “the intention of the group is to build additional liquidity in the United States over time.”

FT has also found that on average, there was little or non -existing analysts to cover a number of companies that have been analyzed, although presidents often point to a greater vision as a reason for the presence of New York.

“All these things are limited, analysts in banks and institutional investors necessarily have resources. [to cover every single company]”

He added that the huge volume of American markets means that investors and analysts tend to note more large companies such as FLTER or CRH.

“In a larger sea, attention tends to go to larger fish,” said Paul Amis, a partner in Winston and Stone. “If you are ten of this size, it is clear that you will have to work more seriously to make waves.”