By Giancarlo Navach MILAN (Reuters) -Betting company Lottomatica is on course to join the Italian blue-chip stock index FTSE MIB next month, traders said on Thursday, replacing medical diagnostics
Lottomatica Set to Join Italy's FTSE MIB, Displacing Diasorin or Pirelli
By Giancarlo Navach
MILAN (Reuters) -Betting company Lottomatica is on course to join the Italian blue-chip stock index FTSE MIB next month, traders said on Thursday, replacing medical diagnostics group Diasorin or tyre maker Pirelli.
The FTSE MIB's composition is reviewed every three months on the basis of companies' market capitalisation and the liquidity of their shares.
The deadline for calculations related to the index update will expire next Monday, August 25, with Lottomatica representing a potential index weight of around 0.95%, with Diasorin slipping to 0.30% and Pirelli to 0.35%.
At this point, Pirelli and Diasorin are the only candidates to make room for Lottomatica in the FTSE MIB, which has up to 40 constituent companies.
At current prices, the parameter used for the ranking is virtually identical, traders said, making it impossible to determine with any confidence which of the two will exit the index. Only FTSE Russell can define the number of shares and the free float to be applied.
Pirelli has the higher valuation of the two but may of its shares are held by large investors and hence it is less liquid.
Lottomatica returned to the Italian stock market in May 2023 and since then has risen 260% after a market debut at 9 euros to reach a market valuation of some 5.9 billion euros ($6.9 billion).
Its share price hit an all-time high of 25.2 euros on July 17. The shares were trading at around 23.5 euros on Thursday.
Apollo Global Management, through the vehicle Gamma Intermediate, in June sold its remaining 21.3% stake in the company.
The changes to the index will be announced on September 3 and will take effect from September 22.
($1 = 0.8577 euros)
(Reporting by Giancarlo NavachEditing by Keith Weir)
