THG PLC (LSE:THG) is set to join the FTSE 250 Index on March 21, a move seen as a major boost for the e-commerce group following the demerger of THG Ingenuity.
The inclusion is expected to attract both index funds and active mid-cap investors, increasing liquidity and visibility for the stock.
CEO Matt Moulding called the milestone an important moment in THG’s evolution as it continues to focus on its beauty, health, and wellness brands, including Lookfantastic, Dermstore, and Cult Beauty.
A market analyst described the move as a "game-changer", estimating that index trackers and mid-cap funds could acquire up to 100 million shares, representing 6% of the company.
The stock was up 3% in early trading on Thursday at 34.98p.