Greencore share price soars after FTSE listing
Experts confirmed that Greencore’s share price had risen nearly 60% to 81p since the firm revealed that it would be moving from the Irish Stock Exchange in December last year, in a bid to attract investor interest.
The comments come after the firm today revealed that it had been accepted on to the FTSE Index as it continues in its bid for listing on the FTSE 100.
Nicola Mallard, an analyst at Investec, told FoodManufacture.co.uk that the move was expected but proved that the firm was moving “in the right direction”.
She said: “This is one of the reasons that Greencore moved from the Irish Stock Exchange. But they had to trade for a certain amount of time before the FTSE panel would accept them on to the index.
Starting to produce results
“If you look at the way the share price has moved then you would have to say yes, the decision is starting to produce results. Greencore has gained market share and the last trading update showed how well it was performing.”
Her comments were echoed by Shore Capital analyst, Darren Shirley, who confirmed that the rise in share price showed the firm was benefitting from the switch.
He told FoodManufacture.co.uk: “I think the share price appreciation has shown the benefits of the move.”
Shirley also said that the firm must now “deliver on the Uniq deal” if it was to continue thriving under its new London listing.
No surprise
Acceptance onto the FTSE series has come as no surprise to many experts, who predicted greater investor interest would arise after the firm also switched its currency listing from euros to sterling last month.
Speaking in February, Julian Wild, food group director at law firm Rollits, told FoodManufacture.co.uk: “Ultimately it will make them slightly more attractive as it will give investors a clearer understanding of what they are investing in. The move equates them with other sterling denominated stock.”
Wild also said that the decision was “a reflection that Greencore is very much a UK business now".
Speaking at the time, Mallard agreed that the change was “necessary” if the firm was seeking further investment in the UK. She also confirmed that it was likely to make Greencore a more attractive option.
She said: “Greencore is predominantly a UK business now, especially since the acquisition of Uniq.
“I think the change to sterling was necessary. They are now vying for a place on the FTSE and I think previously being listed in euros may have put some investors off. Some investors can’t hold stock unless a business is listed in sterling and, for some, this may have been seen as an unnecessary hurdle.”
