Billionaire investors George Soros and Seth Klarman are building positions in Irish building materials company CRH Plc before it shifts its primary listing to a US exchange from across the pond, a signal that efforts to tap into a larger pool of investors is working out.
(Bloomberg) — Billionaire investors George Soros and Seth Klarman are building positions in Irish building materials company CRH Plc before it shifts its primary listing to a US exchange from across the pond, a signal that efforts to tap into a larger pool of investors is working out.
Soros Fund Management held 350,000 American depository receipts (ADRs), worth roughly $20 million in CRH at the end of June, while Klarman’s Baupost Group held a nearly 57,000 stake worth $3.15 million, according to regulatory filings compiled by Bloomberg. At least 26 hedge funds disclosed new or boosted positions in CRH ADRs in that period. CRH is scheduled to shift its primary listing to the New York Stock Exchange from London next month.
The US-listed stock climbed to a record at the end of June and is now roughly 4% off of a July closing high.
All told, hedge funds bought a net 7.53 million CRH ADRs in the three months ending June 30, according to data compiled by Bloomberg. Moore Capital Management LP was the fund that disclosed the largest new position, with roughly 1.48 million ADRs, the data show. Gates Capital Management Inc. was among the other firms that acquired shares in the second quarter as the stock surged.
Since data tracks holdings through the end of June, funds could have changed positions in the past month and a half. Monday was the deadline for institutional investors, including hedge funds, to report certain US equity holdings to the Securities and Exchange Commission.
CRH is among European companies looking to increase liquidity by turning to the US market, which offers a wider investor base and bigger pool of capital. The company won approval from the Irish High Court for the venue swap in July, after shareholders greenlit the move in June.
“The main attraction for listing in the US is that the valuation ratios, as measured by price-to-earnings ratios, price-to-sales ratios, and price-to-book ratios, are relatively high compared to the rest of the world,” said Jay Ritter, a University of Florida finance professor.
Read more: IPO Slump Worsens London’s Shrinking Stock Market: ECM Watch
As London becomes less appealing as a venue for initial public offerings, CRH isn’t alone in shifting away from the market. Arm Ltd., the chip designer owned by SoftBank Group Corp., is expected to list in a US initial public offering next month after deciding against selling shares on the London Stock Exchange.
This story was produced with the assistance of Bloomberg Automation.
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