Shares of RO real estate company One United rally over 20% on FTSE Russell decision
The shares of Romanian developer and investor One United (ONE) surged in less than a week by over 20%, after the market indices provider FTSE Russell decided to include them in its own FTSE Global All Cap Index.
The rally will continue as the shares will become part of the FTSE Russell index as of December 20 - when the company expects "automatic" inflows of USD 10 mln as a result of the investors in FTSE indices.
The global funds will automatically invest, through a "passive tracker" scheme, about USD 10 mln after the ONE shares will actually become part of the FTSE index, according to calculations made by analysts quoted by Profit.ro.
This cash flow will put pressure on the company's price, which now has daily liquidity of about USD 300,000. ONE's capitalization rose in less than a week from EUR 580 mln to almost EUR 700 mln, following the announcement of FTSE.
The real estate developer reported a record turnover of RON 627.7 mln (EUR 125 mln) in the first nine months of 2021, 87% more compared to the same period of 2020. Its gross profit increased by 186% YoY to RON 239.3 mln (EUR 46 mln) in the nine-month period.
(Photo courtesy of the company)