Royal Mail to join FTSE 100

Royal Mail is 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 was confirmed today.

5ff58d6e-61fe-11e3-bb71-0a0c0223000020131212T081612
Royal Mail is to begin trading as a FTSE 100 company on December 23

Royal Mail is 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 was confirmed today.

It will 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.

Its closing price of 596.5p yesterday confirmed it was eligible to join the top-flight when the FTSE Group confirmed its reshuffle today, though today it dipped and finished at 586p.

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.

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

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

Merlin has climbed since its impressive stock market debut in September while London-focused Foxtons has banked a surge in value thanks to the boom in the capital's property market.