The market is taking the relocation of its headquarters to Amsterdam in green numbers as it assesses it will increase its business.
Announcement of the transfer of Dev Ferrovial’s headquarters from Madrid to the Netherlands Considered green by the stock market universe. Shares of the company closed the session on 28 February at 26.25 euros per unit. After the market closed, the company announced the corporate operation, which involved removing its headquarters from the Spanish capital to Amsterdam. From then on, and until the middle of this Friday’s session, the group’s titles gained 3.5% to 27.18 euros per unit. However, the main index of the Spanish stock market, Ibex 35, rose only 0.25% in the same period. “The market has welcomed the infrastructure firm’s decision and this is because profits are expected to increase as a result of the institutional move,” says Joaquín Robles, an analyst at XTB brokerage firm.
Revaluation of Ferrovial Contrasted with the performance of other similar companies of the Spanish selectorFirms that were less advanced than Rafael del Pino’s firm, such as Acciona, ACS or Sacyr, have advanced or regressed somewhat in this short time. In the case of Sacyr, a 4% loss was recorded, while Acciona’s shares were traded at the same price, while ACSs rose 2.2%.
Business groups such as Acciona, ACS, Sacyr or Ferrovial, which have transitioned from the construction business to specializing in service management concessions in recent years, very capital and investment intensive. This is one of the reasons analysts use to contextualize Ferrovial’s transfer to the Netherlands. “The market expects Ferrovial to have better financing conditions in the future with the increase in the valuation of the titles. There are some mutual funds that only invest their money in countries with three times the AAA rating. [nota con la que cuenta Países Bajos mientras S&P otorga a España una sola A]. This company needs a lot of loans and investments to grow and moving to Amsterdam is one of the ways to achieve that,” says Robles of XTB.
A company like Ferrovial only owns 20% of its business. brick. The company specializes in major construction and engineering fields. Some of his best known projects are the work of JFK airport in New York. Also, he 93% of shareholders of this infrastructure company are not Spanish, according to García: “This is an act of an international character”. In addition, according to the results of 2022; 80% of their business comes from outside Spain. “It is a company that has adapted to the market and devoted itself to the sector. to manage infrastructures“.
Today, because of the costs, this infrastructure maintenance activity is a more profitable business than building from scratch, which is businesses that do a lot of damage. Where in this niche railway This is a leader. Nor is it the only Spanish company doing this type of business abroad. Like other builders ACS also wants to build outside of Spain. Generally, these concessions are taken in developing countries with growth potential and big business that only big companies like Ferrovial can achieve.
This internationalization and distance to real estate development has become the success of these companies. “Ferrovial, OHLA, ACS… department stores dedicated to infrastructure And “They did it after the big brick crisis in Spain in 2008,” says Juan Moreno, Bankinter’s property market expert.
institutional stability
Other reasons the company itself cites in a document released this Thursday night refer to “the financial strength and stability of the Dutch economy” and that in the future this may support “a lower volatility in financing costs”. thanks to a more stable country risk premium compared to other European countriesMoreover, Ferrovial emphasizes that this move was carried out at the same time as central banks’ balance sheets contracted.
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Ferrovial sees listing in the United States as a “strategic goal” and believes being a Dutch company will facilitate future acceptance. One of the most relevant points is American Depositary Receipts (ADRs), which are stock-based financial assets that are used as a normal formula for listing in North America. Ferrovial itself has them, as EL PERIÓDICO DE ESPAÑA explains. However, these ADRs are “not eligible to access U.S. stock indexes”, one of the company’s greatest intentions to “make itself the conditions for it”.
In the document, Ferrovial reports that its shares will not be listed on the Spanish Stock Markets “on or shortly after the effective date of the merger.” Company sources explain it that doesn’t mean stop quoting in Spainbut Ferrovial SA will stop doing that and Ferrovial International SE will.