ONLINE fashion giant Asos could have been in contention join the FTSE 100 at tomorrow’s quarterly review – but will miss out because it is still listed on Aim, the junior stock market.
In a highly unusual situation, the retailer has become one of the 100 most valuable London-listed companies without ever acquiring the premium listing required to join leading FTSE indices.
Aim has looser regulations and is designed for smaller firms.
“We wouldn’t comment on the medium term but we have no plans [to transfer to the main market] in the short term,” an Asos spokesman told City A.M. “It’s serving Asos well and is no barrier to investor demand.”
Asos shares closed yesterday at £40.24, having doubled over a year. This values the company at £3.3bn, more than all but three existing FTSE 250 companies.
“What you often find is that companies on Aim struggle to get an audience because certain funds can’t invest in Aim stocks,” explained analyst John Stevenson of Peel Hunt. “But so far it hasn’t proved to be a block in the slightest. I’m sure [a transfer is] on their list but I don’t think it’s far up their list.”