Two of the UK's largest housebuilders have announced their intentions to float on the London Stock Exchange.
Barratt Developments and Taylor Wimpey stated that they will be re-entering the FTSE 100 later in the month following a reshuffle of the blue chip index. The two companies are set to take the place of Petrofac and IMI which will join the FTSE 250. The latter organisations have been affected by falling commodity prices following a global sell-off.
Alongside Petrofac and IMI companies such as Jimmy Choo, Allied Minds, CLS Holdings, Game Digital, Greggs and Spirit Pub will also be moving from the FTSE 100 to the FTSE 250. They will replace the likes of Fenner, EnQuest, Foxtons, Ferrexpo, Hochschild Mining and Spirent Communications which are due to join the FTSE Small Cap Index.
Taylor Wimpey and Barratt Developments will be confirmed as the newest member of the FTSE 100 when trading takes effect on December 22nd. The former has previously been listed on the market following its creation through a £5 billion merger of George Wimpey and Taylor Woodrow March 2007.
However, the newly-formed organisation did not last long on the FTSE 100 losing its place after just 12 months. It had been hit hard by the economic downturn prompting shares in plunge over the course of the year. Taylor Wimpey's re-introduction comes after stock increases of almost 260 per cent in last five year and is now valued at £4.3 billion.
Barratt Developments has enjoyed similar success over the past five year. It purchased Wilson Bowden just a month earlier than Taylor Wimpey's takeover to create a £4.3 billion company at the time. It has experienced a considerable hike (280 per cent) in recent years and is now worth £4.5 billion.
The addition of the two companies comes after the FTSE 100 received a small boost on Tuesday (December 2nd), closing 1.16 per cent up at 6,733.84.
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