Ocado is set to leave the FTSE 100 after a drop in its share price, piling pressure on the business to consider ditching London for New York.
The online grocery firm will be axed from the index during a quarterly reshuffle, according to the London Stock Exchange, after its valuation fell from a £22bn high in the pandemic to £3.6bn as of yesterday (28 May).
Ocado is set to be replaced by software company Darktrace in the blue-chip index, according to indicative changes by FTSE Russell yesterday, with final decisions set to be made using 4 June market data.
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The retailer’s shares would need to rise by nearly 22% to 500p between now and 4 June to avoid relegation from the index, and elevate its current £3.4bn price tag above Darktrace’s £4.1bn valuation.
The grocery business’s recent decline in share price has led to speculation that it is considering ditching London for New York, where its valuation could be greater.
Last month, The Telegraph reported face-to-face discussions had been held with investors in recent weeks where the idea of moving its listing to America was spoken about in detail.
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