Ryanair’s group chief executive, Michael O’Leary, has confirmed that the airline plans to maintain its shares in the United States, noting American Depository Receipts (ADRs) are trading at approximately 30pc higher than ordinary shares in Ireland.
O’Leary highlighted the historical benefits of having significant ownership in the U.S., suggesting that Ryanair should pursue a strategy similar to other companies like CRH and Flutter, which have seen share prices rise after delisting from the Irish stock exchange.
The airline is reviewing ownership rules established post-Brexit that restrict non-EU nationals from holding ordinary shares, indicating that removing some restrictions could enhance the value of ordinary shares to align with ADR prices.
Ryanair is focused on aircraft deliveries from Boeing, with O’Leary expressing confidence that the company will receive the last of its new aircraft in time for summer 2025, while engaging with Boeing executives to ensure timely delivery.
Michael O’Leary said: “When we first floated in 1997, the best thing we ever did was to have at least half the ownership in the US. If you look at CRH, Flutter, they delisted from the Irish stock exchange and went to the US. Their multiples have gone up and their share prices have risen dramatically. We need to do something similar with Ryanair stock. I don’t think we will migrate to a US stock exchange because of the need to be majority EU-owned. It gets characterised here as the ADRs trading at a premium. In fact, it’s the ordinaries [ordinary shares listed in Ireland]that trade at a discount. The Americans will pay a higher premium for good earnings. So, typically, airline multiples in the States today are about 14 or 15 times earnings. Airline multiples in Europe are about nine, 10 times earnings. The ordinaries are trading at a meaningful discount to the ADRs. If we were to remove the restriction on non-EU [investors]buying ordinaries, I think you’d see the ordinaries trade up to where the ADRs are currently valued and we would have a much higher premium.”
