The Recent IPOs On Track to Enter FTSE

Mon, 25th Nov 2013

Several companies have recently floated on the stock market and are now on track to enter the FTSE 100 or FTSE 250. Among those companies are the Royal Mail, Foxtons, Riverstone Energy and Merlin Entertainments.

Royal Mail is the top performer among recent IPOs, and is looking like a sure FTSE 100 entry when the index reshuffles next month. The company currently has a benchmark value of £5.5 billion, and there are still many who believe it was under-valued when it was sold off to the public.

Merlin Entertainments, the company behind Legoland and Madame Tussauds, is another company that is looking like a possible FTSE 100 entrant, having seen strong demand for its recent IPO. The company would likely replace Vedanta Resources, who has seen its shares fall by more than 20 percent in recent months.

Meanwhile, Foxtons, with a market capitalization of more than £830 million, seems to be on track to enter the FTSE 250. The company floated in September and has been doing consistently well over the last few months.

The reshuffle is set to take place in December, and will see companies that are underperforming dropped from the index in favour of stronger firms. The number of IPOs taking place in the city in recent months has been unusually high, and is hopefully a sign of economic recovery. Some new blood in the index could well help to bolster the FTSE as we head into the new year.

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