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Ocado could face relegation from the FTSE 100 after its share price collapsed, amid reports the company is considering moving its listing from London to New York.
The London Stock Exchange named Ocado Group as an indicative FTSE 100 deletion ahead of its next quarterly reshuffle, with technology group Darktrace likely to take its place, moving up from the FTSE 250.
The actual review of the FTSE UK Index Series will be conducted using data as at market close on 4 June, and confirmed changes will be announced after market close on 5 June.
It comes as Ocado’s valuation plunged from £22bn during the pandemic to just £3.6bn as of Tuesday, according to The Telegraph.
Alongside Ocado, financial advice company St James’s Place is also expected to drop out of the FTSE 100 after its share price fell more than 55% over the past year.
According to The Telegraph, Ocado shares would need to rise by almost 22% from 411p to over 500p between now and 4 June to make its current £3.4bn valuation higher than Darktrace’s £4.1bn.
The collapse in Ocado’s share price has sparked rumours that it is considering a move to New York, where its valuation could be higher. The group reportedly held talks with investors last month, after facing pressure from shareholders to abandon the London stock exchange in favour of the New York market.
The London Stock Exchange declined to provide additional comment, and Ocado has been contacted for comment.
