Bankinter | The company could delist from the New York Stock Exchange (NYSE). According to the media, the measure will be announced in the new strategic plan scheduled for November and is in line with the objective of saving costs and simplifying the business. The reporting and regulatory compliance requirements of the NYSE are high, and Telefónica believes that the return does not offset the costs.
Analysis team’s view: We do not believe this measure will have a significant impact on the share price. The average daily volume of Telefónica ADRs on the NYSE is 583,790 shares (€2.7 million at the current price) compared to 6.8 million shares on the Madrid stock exchange (€31.2 million), making the Madrid stock exchange the main market for the stock, with NY being a secondary market with high associated costs. There is no record of the percentage of US shareholders in the group’s capital, but institutional investors include Vanguard (3.17%), BlackRock (3.65%), Morgan Stanley (0.30%) and Goldman Sachs (0.11%).
