(Bloomberg) -- Aston Martin's chances of entering the U.K. stock benchmark FTSE 100 are getting slimmer by the day.
The luxury carmaker lowered the top price range of its initial public offering today, meaning the upper-end would give the stock a market value of about 4.54 billion pounds. According to FTSE Russell rules, any company with market capitalization that is higher or equivalent to the U.K.'s 90 biggest stocks is automatically added to the index. The next index review is set for Dec. 5.
That 90th spot belonged to Paddy Power Betfair as of Sept. 28, with a market value of about 5.3 billion pounds, 17% more than Aston Martin's most optimistic valuation. Likewise, if a FTSE 100 company falls to the 111th place or lower among the U.K.'s most valuable listed companies it would be replaced by a higher ranking FTSE 250 Index member.
In addition, if a newly-listed stock meets the capitalization watermark as well as nationality, free-float, liquidity and trading criteria, it will typically enter a FTSE U.K. Index upon the next review. For Aston Martin, that means a place on the FTSE 250 may be more likely at the time being.
The London Stock Exchange didn't comment on Aston Martin's prospects of index entry, referring Bloomberg News to the FTSE Russell methodology. An Aston Martin spokesman declined to comment.
--With assistance from Benjamin Katz.
To contact the reporter on this story: Ksenia Galouchko in London at kgalouchko1@bloomberg.net
To contact the editors responsible for this story: Blaise Robinson at brobinson58@bloomberg.net, Monica Houston-Waesch
©2018 Bloomberg L.P.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.
