Re: Moving up?30 Aug 2017 10:55
FT article:
NMC Health is frontrunner to join London's blue-chip benchmark as part of a quarterly review due to be announced on Wednesday. The Abu Dhabi-based group, which was floated on the London market in 2012, has a market value of more than £5.4bn having jumped to a record high this week on interim results.
But only 40 per cent of NMC's shares are freely floated. Control of the group remains with a concert party led by Bavaguthu Raghuram Shetty, NMC’s joint non-executive chairman, who has retained a 24.3 per cent stake in the company he founded four decades ago.
FTSE inclusion would require index trackers to spend about £31m on NMC shares, equivalent to more than seven days of average daily volume in the stock, according to Société Générale.
While passive funds often try to pre-empt expected index changes using derivatives contracts, they may have struggled to hedge for NMC's possible promotion due to its surge close to the deadline and August’s slim equity volumes.
