Ocado officially drops out of FTSE 100 after 6-year stint

Ocado has officially dropped out of the FTSE 100 index following a quarterly reshuffle, after 6 years on the list.

The FTSE 100 index is made up of the 100 biggest London public companies by market capitalisation on the London Stock Exchange (LSE).

As of today (6 June) Ocado sits at a share price of 357.2p , with shares currently trading at £3.53, compared to £28 at the peak of the pandemic. It will join FTSE 250, with the change to be implemented from the close of business on 21 June, and take effect from the start of trading on 24 June.

The technology group’s relegation was prompted by a fall in share price, after its valuation dropped from £22bn during the pandemic to just £3.6bn last week.


Subscribe to Grocery Gazette for free

Sign up here to get the latest grocery and food news each morning


News of the retailer’s imminent axing from the list was accompanied by the prediction that Ocado’s shares would have to increase by almost 22% to 500p by 4 June and lift its current price tag of £3.4bn if it wished to remain in the FTSE – a figure it ultimately never achieved.

The online supermarket’s demotion from the top table was joined by fellow companies wealth manager St James’s Place and industrial and electric firm RS Group. The businesses are to be replaced by three new companies – Vistry Group, LondonMetric Property and Darktrace.

Ocado’s exiting of the index comes amid mounting pressure from shareholders for Ocado to move its stock market listing from London to New York.

Only last month, The Telegraph reported that face-to-face discussions had been held with investors where abandoning the UK stock market for America was discussed.

It also follows in the wake of M&S’ positive full year profits, when CEO Stuart Machin described Ocado Retail’s results as “remain[ing] disappointing” as its “profitability [was] well below original expectations”.

This comes despite the online supermarket repeatedly being named as the fastest growing retailer in recent months, according to data from Kantar and NIQ.

FinanceNewsSupermarkets

RELATED POSTS

Leave a Reply

Your email address will not be published. Required fields are marked *

Fill out this field
Fill out this field
Please enter a valid email address.

Menu