FUNDING Circle is set to enter the FTSE 250 index less than three months after listing on the London Stock Exchange.
The peer-to-peer business lender has been promoted as part of the latest quarterly reshuffle that will see well-known brands such as AA and Thomas Cook Group exit the FTSE 250.
The car insurance provider and the travel company now have a market capitalisation of around £530m each, but Funding Circle has a valuation of £1.3bn and joins other newly-listed companies such as Aston Martin and the Smithson Investment Trust in getting promoted.
The promotion should go some way in refuting criticism of Funding Circle’s performance shortly after its stock market debut on 3 October, when its share price fell to as low as 334p on the first day of trading.
The P2P firm’s share price recovered later that day, rising to 385p.
Aston Martin, which floated around the same time at Funding Circle, had a similarly shaky start, which is thought to have been due to wider market jitters relating to Brexit.
Keller, Kier, On The Beach and Spire Healthcare will also exit the FTSE 250 in the latest reshuffle, which comes into effect on 24 December.