CRH’s move to New York stock market justified by share price rally

CRH had long traded at a discount to US competitors while it was isolated on the Irish exchange

CRH shares rose following last week’s impressive earnings report, continuing a rally that has gathered pace since September’s New York Stock Exchange debut.

CRH has long traded at a discount to US competitors. Bridging that valuation gap by moving its main listing to the more liquid and highly rated American market underpinned CRH’s departure from the Irish exchange.

With CRH shares up some 50 per cent this year, the logic of that decision was unquestionable. Bloomberg recently reported CRH was one of the most popular hedge fund buys in the third quarter, and the possibility of inclusion in the S&P and Russell indices next year may drive further investor interest.

Smurfit Kappa and Paddy Power owner Flutter will soon follow in CRH’s footsteps and leave the Irish market for the US. Euronext Dublin’s pleas to stem the tide by cutting stamp duty on share purchases are seemingly falling on deaf ears in Government circles, but would it make any difference?


Probably not. As CRH’s share price gains have shown, the higher valuations afforded by the more prestigious US market means it’s hard to compete.

Proinsias O'Mahony

Proinsias O'Mahony

Proinsias O’Mahony, a contributor to The Irish Times, writes the weekly Stocktake column