Russian steel maker sees shares jump on first day of trading on London’s Main Market
Evraz is set to join the FTSE 100 after successfully listing its shares on the Main Market of the London Stock Exchange (LSE) yesterday.
The Russian steel company saw its shares jump 13 percent on the first day of trading, valuing the company at £4.7 bn ($7.5 bn).
‘Following admission, it is expected that… Evraz will be eligible for inclusion in the FTSE UK Index Series (including the FTSE 100 Index) with effect from December 2011,’ the company notes in a statement filed with the LSE.
Evraz was allowed to take a premium listing in London despite having a free float of only 23.4 percent, after the UK Listing Authority (UKLA) issued a waiver.
Normally companies must have a free float of at least 25 percent of their share capital to gain a premium listing, but this can be bypassed if the UKLA decides the number of shares being floated will be big enough to create a liquid market.
The FTSE Group, which compiles the make-up of the FTSE 100, will hold its next reshuffle on December 21.
Free float consultation
The index provider is currently consulting on whether it should raise the minimum free float level for inclusion in the FTSE UK Index Series to 25 percent from 15 percent.
The consultation has come about following debate among investors and the media on whether London’s listing standards are too lax.
This debate has been fuelled by the news that Evraz and two other Russian companies – Polymetal and Polyus – are keen on a place in the FTSE 100.
The FTSE Group told Reuters yesterday that if it did admit Evraz to the FTSE 100 and then raised its free float threshold to 25 percent, the steel company would be given a 12 month-24 month ‘grace period’ to raise its float.