Sunbelt(SUNB.US) Leverages the "HALO" craze to go public in the US, with heavy asset industrial sector becoming a safe haven for funds

CNBC Finance APP has noticed that equipment rental company Sunbelt Rentals Holdings Inc. (SUNB.US) officially made its debut on the U.S. stock market on Monday. Recently, investors have been flocking to companies that are asset-heavy, capital-intensive, and cannot be replaced by artificial intelligence.

The company previously conducted a major listing in London under the name Ashtead Group Plc, and is now one of the largest companies in the industry listed in the United States. Ashtead’s stock closed last Friday with a market value of approximately £22 billion (about $30 billion).

Sunbelt closed at $73.79 on the New York Stock Exchange on Monday, up 3%. According to the company, its closing price in London on Friday was £53.26, approximately $71.66.

Before the Iran conflict drew investors’ attention, the market was selling off any assets feared to be disrupted by AI tools, from real estate service companies to payment companies, without exception. Investors instead flocked to companies that manufacture or transport physical goods, pushing the S&P 500 industrial index to a record high.

Miller Tabak+Co.'s chief market strategist, Matt Malley, said that stocks like Sunbelt “should perform well in the context of a search for heavy assets.”

In February, Ashtead’s stock traded in London rose 14%, nearly double the approximately 7% gain of the benchmark FTSE 100 index. This was mainly due to the so-called “HALO” trading strategy—“heavy assets, low淘汰率”—which is gaining momentum.

But HALO is not a guarantee of success. Although US peers United Rentals Inc. and Herc Holdings Inc. saw their stock prices grow by double digits in the first week of February, both companies ultimately underperformed the 10% rise of the S&P 500 industrial index in February.

US Market Deployment

Sunbelt derives over 90% of its revenue from North America, and views its expansion into the U.S. market as a way to align its investor base with its business footprint.

Sunbelt CEO Brendan Hogan said that the company’s flagship products (such as heavy-duty generators and complex scaffolding) help it win business related to large construction projects like data centers and infrastructure projects.

“This is a once-in-a-generation opportunity, not a flash in the pan,” he said. “For the rest of our careers, large projects will be an important part of the end markets we serve.”