Royal Mail poised to join FTSE 100

Royal Mail is set to take its place among the City's 100 leading listed companies two months after a controversial privatisation that has seen its market value soar by 80%.

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Royal Mail is set to take its place among the City's 100 leading listed companies two months after a controversial privatisation

Royal Mail is set to take its place among the City's 100 leading listed companies two months after a controversial privatisation that has seen its market value soar by 80%.

It is poised to begin trading as a FTSE 100 company on December 23, following a share surge that has seen its value increase to nearly £6 billion.

The stock was initially offered at 330p before climbing strongly - sparking accusations that it had been sold off on the cheap by Business Secretary Vince Cable.

It closed tonight at 596.5p, meaning it looks certain to join the top-flight when the FTSE Group finalises its reshuffle, which will be confirmed tomorrow.

Chief executive Moya Greene will now become one of just four female FTSE 100 bosses, joining easyJet's Carolyn McCall and Imperial Tobacco's Alison Cooper.

A fourth, Angela Ahrendts of Burberry, is leaving next year but BT executive Liv Garfield will make up the number when she takes over at Severn Trent.

The FTSE Group earlier published the names of the firms whose positions at the close on Monday indicated that they looked likely to move

The confirmed reshuffle will be based on the market value of companies based on tonight's closing share prices.

Also moving into the FTSE 100 should be construction and industrial equipment rental firm Ashtead, with chemicals group Croda International and miner Vedanta Resources relegated from the shares premier league.

Tipped for the second-tier FTSE 250 were Madame Tussauds and Alton Towers owner Merlin Entertainments and estate agency Foxtons, following their own recent flotations.

Merlin's impressive stock market debut in September saw it offered at 315p and it has now reached 352p, 12% ahead.

London-focused Foxtons has banked a surge in value thanks to the boom in the capital's property market, up from £649 million at the start of trading in September to £830 million at the close today.