Plus500 stock started trading on the London Stock Exchange’s (LSE) main market for listed securities this Tuesday morning. The CFD provider’s move to the LSE’s main board could see it becoming a part of the FTSE 250 Index which lists the largest 101 to 350 companies on the LSE in September when there is a reshuffle.
Plus500 announced that it was applying to move to the LSE’s main board in May of 2018. At that time the firm was still trading on the LSE but only in its alternative investment market which is focused on high growth companies.
When the broker announced its decision to switch to the main board, it provided a number of justifications for the move, all of which centered around growth and included efforts to improve its stature, diversify funding sources, and enhance its ability to use company shares as a means by which to make acquisitions.
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The firm’s application to move to the main board required regulatory approval from the UK Listing Authority – a division of the Financial Conduct Authority. This approval was given on the 20th of June and enabled the broker to switch over to the main board today.
As a result of its move to the main board, the firm is expected to become a part of the aforementioned FTSE 250. This was something the firm was likely consciously pursuing. At the time of the broker’s application to join the LSE main board, Asaf Elimelech noted that the move could facilitate “potential inclusion in FTSE indices.”
This would seem to be the case as, based on Plus500’s current market capitalization (market cap), the firm would fit within the FTSE 250 with ease. The firm’s market cap currently lies at approximately £1.90 billion ($2.52 billion). This means it would be about the 90th largest firm, in terms of market cap, list on the FTSE 250.
Asaf Elimelech, CEO at Plus500, commented: “We are thrilled to confirm our listing and admission to trading on the London Stock Exchange’s Main Market. This development is expected to enhance the liquidity of the Company’s shares and provide a greater range of potential investors for the Company both in the UK and overseas, reflecting the global nature of its business. Our move up represents the next chapter in our growth story, as we continue to expand and diversify our sources of earnings by adding new international licences.”