Less than a month after its listing on the London Stock Exchange, Metlen Energy & Metals deservedly earns a place among the elite of the London Stock Exchange by joining the FTSE 100, the leading index of the British market, which includes the largest listed companies.

Joining the FTSE 100 is not just another step towards internationalisation. It marks Metlen’s recognition as a player with European weight in the energy, metals and defence sectors.

The move paves the way for new investment inflows from international funds and institutional investors, as the world’s largest funds and ETFs are necessarily positioned in the index’s shares.

JP Morgan estimates that the net positive impact from passive funds could exceed $400 million. In addition, stocks in the FTSE 100 have higher trading volumes, hence greater liquidity.

This helps the company in future capital raisings, but also helps investors who can get in and out of the stock more easily.

Moreover, presence in the index is considered a “seal of quality”. It often leads to an improved valuation (valuation premium), because the stock gains more visibility and attracts investors who otherwise would not have spotted it.

In addition, it is also a “passport” to the global market as the major international media (Financial Times, Bloomberg, Reuters) and rating agencies closely monitor the index. Thus, the company gains recognition and credibility on a global level.

Many institutional investors also have rules that allow them to invest only in “blue-chip” companies such as those in the FTSE 100. So Metlen is gaining access to funds that, until yesterday could not invest in it. It is worth noting that the FTSE 100 is considered equivalent to the US S&P 500 or Germany’s DAX.