Abengoa SA, the Spanish renewable-energy developer that offered American depositary receipts yesterday, will eventually delist its shares from its home exchange to avoid “structural problems” in Europe’s capital markets, said Chief Executive Officer Manuel Sanchez Ortega.
The company’s ADRs will trade under the symbol ABGB and are each worth five Class B shares. The company will use the proceeds to pay down debt, Ortega said in an interview today at the Nasdaq Stock Market in New York, where Seville, Spain-based Abengoa is now trading.
The U.S. has become Abengoa’s biggest market, and trading there will make the company more visible to investors and analysts, Ortega said. He expects to exit the Madrid Stock Exchange “in the next couple of years.”
“We no longer have a home country,” he said. “If you said where the home country is, where you have the most business, that country would be the U.S.”
Abengoa’s ADRs gained 3.3 percent to $12.75 at the close in New York.
Abengoa gets about 18 percent of its revenue in Spain and 30 percent in the U.S., according to an August earnings presentation.
“In Spain, or Europe in general, there is a structural problem with capital markets,” because there are so many national exchanges, he said. “That’s pretty inefficient.”
Abengoa is the world’s largest developer of solar-thermal power plants, and expects to see demand increase for the technology because it includes power-storage capabilities. Its $2 billion Solana plant went into operation in Arizona this month.
Solar thermal power plants use mirrors to focus sunlight to heat steam and drive turbines to generate electricity. The 280-megawatt Solana project also stores some heat to produce electricity after the sun goes down.
“That means renewables can now be baseload energy,” he said.