Based on today's close in Spain and exchange rates, Grifols class A ordinary shares (GRF.MC) are worth US$21.43 per share. Each GRFS ADR represents 1/2 of a class B ordinary share. That means each share of GRFS should be worth US$10.71. Based on today's closing price of US$8.08, GRFS is trading at a 25% discount.
Yes, the B shares have no voting rights, but ownership of the A shares is concentrated. Even if the B shares could vote, they wouldn't have any control. Maybe GRFS should trade at a 10% discount, but 25% seems like a lot.
Average daily volume on GRFS now higher than Spanish GRF.MC. Plus the discount has shrunk back to the 25% range.
Could see the US-listed stock becoming the primary trading vehicle fro Grifols this year and the discount completely going away. Given it is still at about a 25% discount, should be some good upside this year.
Too bad no-one has provided options on GRFS yet. Would give us some trading options, but also drive more interest in the stock.
I thought I read somewhere that the US Institutional holders and original Talecris holders are unhappy about the large discount here and were pressuring the company to do something. Any news on that front?