SHOCKING REVELATIONS: US Listings DRAINING VALUE from European Firms!
Hold onto your wallets, folks! The shiny allure of a New York stock market listing is turning out to be more of a gilded cage than a golden opportunity! Recent explosive findings reveal that a whopping 50% of European companies making the leap across the Atlantic are not just failing to boost their valuations, but actually losing money!
“U.S. Listing = Guaranteed Wealth?” NOT SO FAST!
In a jaw-dropping analysis of 12 European companies since 2016—think heavyweights like Ferguson, CRH, and Flutter Entertainment—it turns out that instead of boosting their stock prices, many have been sinking in value! As Richard Werner, a sharp legal mind at BCLP, declares: “The basic thesis that you move to the US and your share price improves is NOT right!” Companies that once dreamt of fattening their wallets are instead watching their fortunes dwindle.
Market Madness: A Desperate Escape from Europe!
With their eyes on the astronomical growth of the U.S. stock market, several UK companies are throwing caution to the wind. UK broker TP ICAP is roadmap-ing a risky bid to set up shop in New York, while Glencore, a mining titan, is having a serious identity crisis—considering leaving London behind forever! Even British construction giant Ashtead has announced a shift to the U.S., claiming “there’s just MORE money to be made”—really?
European Giants or US Woes?
The analysis shows a disturbing truth: Half of these brave companies witnessed their valuations take a nosedive in the U.S.! For smaller firms, this is catastrophic—a staggering 7% drop in expected earnings, leaving them gasping for air in a vast ocean of competition. And even worse, many are still invisible to the analysts who matter!
CRH: The Rare Success or Just a Fluke?
While CRH basked in the glow of success—a valuation boost of 25% after making its U.S. debut—others, like Flutter and Ferguson, can’t even keep their heads above water, with share prices plummeting! Flutter’s numbers fell from a robust 29.8 to a dismal 29.1; is moving to the U.S. now a curse instead of a blessing?
EXPENSIVE MISTAKE! The Hidden Costs of US Listings!
Prepare for financial shockwaves, people! Adding a U.S. listing could cost companies upwards of £1 million! That’s right—legal fees, reporting costs, and hidden expenses are piling on like a tidal wave! Many firms are quickly learning that the U.S. dream can quickly turn into a financial nightmare.
Will They Sink or Swim?
European policymakers are scrambling to save the day, desperate to inject life into local markets while their businesses flirt with American exchanges. But will these bravados pay off, or are they inviting disaster upon themselves? Only time will tell if these European firms can swim against the tide, or if they’ll be swept away to financial ruin!
Stay tuned, because this financial storm is brewing and it’s bound to get even crazier!
photo credit: www.ft.com
