ACS Actividades de Construccion y Servicios SA fell 4.61% to trade at 125.15 after unveiling a plan to deploy €1.8 billion into digital infrastructure projects, partly funded by a share issuance of about 2% of total share capital via an accelerated bookbuilding.
The capital increase represents roughly 2% of share capital, valued at over €700 million. The rest of the funding comes from €1.1 billion from the termination of equity swaps with CaixaBank and Societe Generale.
Market reaction is driven by valuation concerns. The stock traded at a P/E ratio of 35.08 after a strong rally over the past twelve months.
ACS is scheduled to release its next earnings report after market close today, adding uncertainty. Major shareholders, including chairman Florentino Pérez and Criteria, indicated they will participate in the offering.
The selling pressure follows a pattern from Monday's session. Despite robust Q1 2026 results, the capital raise overshadowed positives.
After a 57% rally in 2026, the stock fell 5.2% compared to a 1.6% decline in the broader Spanish market. Spain's IBEX 35 rose 0.75%.
The combination of surprise equity issuance, high valuation, and earnings report has created selling catalysts. ACS is the leading data center builder but the market demands a lower entry point.
