Construction group set to join FTSE 250
Leicestershire-based construction materials group Breedon is set to join the FTSE 250 just months after it moved to the main market.
The group made the switch in May after more than 10 years on AIM, to enhance the company’s corporate profile and recognition, as well as extending the opportunity to invest in the group to index tracker funds and a broader group of international institutional shareholders.
Last night’s closing share price of 351p values the group at £1.2bn.
It is one of seven companies are in line for promotion to the FTSE 250, alongside 888 Holdings, CAB Payments Holdings, Ceres Power Holdings, Foresight Group Holdings, Moonpig Group, and Tullow Oil.
They would replace Capita, CMC Markets, Liontrust Asset Management, Molten Ventures, Synthomer, Vanquis Banking Group, and Warehouse REIT.
The membership of the FTSE 100 and FTSE 250 is reviewed quarterly, with the next reshuffle based on company values at the end of Tuesday, August 29.
The weak foundations of the residential property market are likely to relegate housebuilder Persimmon from the FTSE 100, ending its 10-year stay in the elite rankings of the UK’s largest listed companies.
The York-based developer has lost 70% of its market value since April 2021 and last night’s closing share price of 986p valued the company at £3.15bn.
Abrdn, Johnson Matthey and RS Group are also in danger of relegation next week, with their values having dropped below £3.5bn.
Pharmaceuticals business Dechra is expected to be promoted to the FTSE 100, although this is likely to be shortlived because it has agreed a £4.5bn takeover deal from Swedish private equity firm EQT.
Other companies expected to be promoted are Marks & Spencer, returning after four years, Diploma and Hikma Pharmaceuticals.
The final decisions on the quarterly reshuffle will be announced after the markets close next Wednesday.
