Merlin can enter the Lisbon Stock Exchange already in March

  • ECO News
  • 21 October 2019

With six billion euros in market capitalisation, it could be the fifth largest listed on the benchmark index.

Spanish Merlin Properties may have direct entry into the main Portuguese stock index PSI-20 already in March. With a market capitalization in excess of six billion euros, the company – which recently announced that it will enter the Portuguese stock market – says that the goal is to trade in the largest window of listed companies in Portugal and could be the fifth largest company in the index.

João Cristina, head of Merlin in Portugal, explains to ECO that “the objective is to enter the PSI-20”, but stresses that “the date will also depend on the analysis of the PSI-20 committee”.

The goal is entry into the PSI-20. However, the date will also depend on the analysis of the PSI-20 committee. If approved our entry, and since the market capitalization of Merlin is about six billion euros, we would occupy the fifth place among companies listed in Portugal”, said the Spanish company’s leader.

The real estate company had already indicated its intention to be listed in Lisbon in order to have greater visibility in the Portuguese market. As it is listed in Spain, the company is already familiar with the necessary requirements and expects to complete the process by the end of the year.

It should therefore be considered in the next annual review of the PSI-20, in March, and meet the necessary requirements to integrate the index: at least 100 million euros in free float market capitalization and a minimum of 15% of free float.

As it will be a newly listed company in Lisbon will also have to have a minimum of 20 negotiated sessions, but even if the listing slips into January it will still be possible.

“The operation is a pure dual listing, with a listing of the same shares listed in Spain on the Portuguese stock exchange. In this way, Portuguese investors can acquire Merlin shares on the Portuguese stock exchange”, says João Cristina. “If our entry is approved, and since Merlin’s market capitalization is around six billion euros, we would be in fifth place among the companies listed in Portugal”.