Wednesday, December 18, 2024

CRH shares shine in US since move and put Iseq 20 in the shade

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Irish building materials giant shifted its primary listing to New York last September

CRH’s shares have risen about 47pc on the New York Stock Exchange since September 25 last year – the day it moved its primary share listing from London to the US. It also delisted its shares on Dublin’s Euronext that day.

Its shares are currently trading at around $83 each in New York, giving the company a $57bn market capitalisation.

Since September 25 last year, the Iseq 20 – which tracks the performance of Ireland’s biggest listed companies such as Ryanair, Bank of Ireland, Kerry Group and Glanbia – has climbed 17.7pc.

Gainers on the Iseq 20 over the past eight months include Glanbia, which has risen about 16pc. Shares in Ryanair have also climbed about 16pc in that time, while AIB is up 23pc and insulation giant Kingspan is up 32pc.

CRH, whose CEO is Albert Manifold, shifted its primary listing to New York as the US becomes an increasingly important market for the group.

Last year, CRH generated revenue of $34.9bn, with about $20.5bn of that in the United States. In terms of earnings before interest, tax, depreciation and amortisation (Ebitda), the US accounted for 75pc of the total $6.2bn it generated last year.

As it moved its primary listing to New York last year, CRH said the US is expected to be a “key driver” for the group’s future growth due to continued economic expansion, a growing population and significant construction needs.

“As the leading building materials solutions business in North America, CRH is uniquely positioned to capitalise on the strong growth opportunities in the US construction market, underpinned by long-term structural tailwinds from federal, state and municipal funding support,” it added.

Shares in gambling giant Flutter, which owns Paddy Power, have barely budged since the company secured a listing in New York at the end of January. Flutter is in the process of moving its primary listing from London to New York at the end of this month.

It’s also hoping to capitalise on the growth of its FanDuel brand in the US, where it has become the leading online sportsbetting company after a string of states legalised sportsbetting.

Flutter’s shares were trading at $212 when they began changing hands in New York at the end of January, rose to $225 in mid-March and are currently trading at around $208. That gives it a market capitalisation of $37bn.

Flutter chief executive Peter Jackson previously said that potential investors in the US like to see companies reporting under US GAAP (Generally Accepted Accounting Practices).

“They also like to see companies listed on their domestic exchanges. It gives people a lot more comfort in their ability to invest,” Mr Jackson said last year, adding that a lack of stamp duty on share trades, and high levels of equity liquidity are also helpful for investors.

Releasing first-quarter results recently, Flutter said FanDuel performed strongly in the period, seeing 15pc year-on-year growth in average monthly players.

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