Editor's note: This brief was summarised by The Property AI Newsroom from a report by Property Industry Eye. Read the original article for full details.
Rightmove to Leave FTSE 100 After Share Price Drop
Rightmove is set to be relegated from the FTSE 100 index later this month, ending its long-standing presence in the UK's blue-chip listing. The property portal will join the FTSE 250 when the latest index reshuffle takes effect on 22 June, according to FTSE Russell.
The move follows a sharp decline in Rightmove's share price over the past year, with the stock falling by more than 40%. Investor sentiment has been affected by several developments, including the company's announcement of a £60 million artificial intelligence investment programme, pressure from activist shareholders, and a £1.5 billion legal claim filed earlier this year.
Rightmove, which floated on the London Stock Exchange in 2006 with a market valuation of around £425 million, became one of the UK's most valuable listed property businesses. Its shares reached a record high in 2021, giving the company a market capitalisation of around £6.7 billion at that time.
In September 2024, Rightmove rejected four takeover approaches from Australia's REA Group, the highest of which valued the company at £6.2 billion. After REA withdrew its interest, Rightmove's share price fell sharply and has continued to come under pressure. The company's current market value is around £3.3 billion, significantly below REA's final offer.
Housebuilder Berkeley Group Holdings is also expected to leave the FTSE 100 in the same reshuffle.
Source: Property Industry Eye