CRH Debuts on NYSE After Leaving Dublin Exchange, Flutter Entertainment Might Follow

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CRH (NYSE:CRH), the building materials giant, debuted on the New York Stock Exchange (NYSE) today, Monday, after being delisted from the Irish Stock Exchange. The company has been trading in Dublin for over 80 years. CRH had completed the necessary changes to transfer its primary listing from Euronext Dublin to NYSE. The company's shares were 2% higher in early trading in New York today.

The decision to shift its primary listing to New York was made earlier this year, with a secondary listing in London also chosen. CRH will still maintain its headquarters and tax residency in Ireland. The move was approved by CRH shareholders at an Extraordinary General Meeting (EGM) in June.

Albert Manifold, CEO of CRH, said that the move would allow the company to leverage large US government spending programs and future tax advantages in mergers and acquisitions. This could facilitate a "higher vector of growth". He noted that being recognized as an American company would put them on a level playing field with their competitors in a very competitive market.

Last year, the US market accounted for about 75% of CRH's core earnings, making it the largest building materials supplier in the country. In 2022, CRH reported group earnings before interest, tax, depreciation, and amortization (EBITDA) of $1.4bn and revenues of $32.7bn.

Notably, billionaire investors George Soros and Seth Klarman established positions in CRH during the summer. Over two dozen hedge funds disclosed new or increased positions in CRH’s American Deposit Receipts on Nasdaq recently.

Following CRH's departure from Euronext Dublin, Flutter Entertainment, owner of Paddy Power and Betfair, became the largest Irish company listed on the exchange. Flutter is also considering moving its primary listing to New York later this year or early in 2024, following a majority of its investors backing the plan. However, Flutter has not yet confirmed this move.

Additionally, paper and packaging giant Smurfit Kappa is planning to merge with US-based WestRock (NYSE:WRK). If the deal proceeds, it will also delist from Dublin and be listed on the NYSE. The merged entity, Smurfit WestRock, would be a $20 billion paper and packaging giant, still headquartered in Ireland.

The departure of CRH and the potential exits of other companies have raised concerns for Euronext Dublin, which has seen several A-listers leave in recent years. However, Siobhan Talbot, CEO of Glanbia, reassured that the group has no intention of leaving its Dublin listing for the US.

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