Lower Free Float, Wider Access: A Change to FTSE UK Index Series Eligibility

On 22 June 2026, FTSE Russell lowered the minimum free float requirement that it applies when assessing whether a non-UK incorporated listed company is eligible for inclusion in the FTSE UK Index Series. Such a company must now have a minimum free float of 10%.

As September’s review of the FTSE UK Index Series approaches, we consider how index inclusion could now be within reach for more listed companies, strengthening the case for choosing the United Kingdom as a listing venue.

What is the Free Float Requirement?

A company may be included in the FTSE UK Index Series if:

• it is admitted to the equity shares (commercial companies) listing category or the closed-ended investment fund category of the Main Market of the London Stock Exchange; and
• it meets the eligibility requirements set by FTSE Russell.

One of those eligibility requirements is that a proportion of the shares in that listed company must be available to the public; those shares are referred to as its “free float”.

In the past, FTSE Russell has applied different free float requirements to listed companies depending on their place of incorporation: UK incorporated companies had to have a minimum free float of 10%, while for non-UK incorporated companies it was 25%.

However, it now applies the same minimum free float requirement of 10% to all listed companies, regardless of where they are incorporated.

Why Has it Changed?

The change to the free float requirement was made to achieve consistency:

• with FTSE Russell’s approach across its other indices; and
• with the minimum free float requirement that applies to listed companies under the UK Listing Rules.

When it consulted on the change, FTSE Russell noted that none of its other indices impose different minimum free float requirements for companies based on where they are incorporated, making the FTSE UK Index Series an outlier. It believes that aligning the free float requirements in its indices makes them more representative of the markets they are designed to track and, therefore, a more accurate measurement of economic reality and market exposure.

FTSE Russell and respondents to the consultation favoured the change because it aligns the eligibility requirements for inclusion in the FTSE UK Index Series with those for becoming a UK listed company.

The change is also consistent with the recent significant reforms to the UK listing regime, which were aimed at reducing regulatory burdens for companies and barriers to listing.

Why Does the Change Matter?

Aligning the minimum free float requirement for a UK listing and for inclusion in the FTSE UK Index Series at a relatively low level of 10% is likely to make the UK a more attractive listing venue for non-UK incorporated companies.

It means that inclusion in the FTSE UK Index Series is more achievable for those companies, particularly if they have concentrated ownership structures involving founder shareholders, family shareholders, strategic shareholders or sovereign shareholders.

Inclusion is an attractive prospect for many companies because it can increase their visibility and liquidity and make their shares eligible for purchase by FTSE index-tracking funds and exchange-traded funds. This may, in turn, broaden their potential institutional investor base.

Is Any Action Needed?

A non-UK incorporated company considering a listing may wish to revisit its IPO planning and, in particular, its venue analysis as a result of the change to the free float requirement. It may be that listing in the UK would now allow the company to benefit from inclusion in the FTSE UK Index Series, where its free float would have precluded this before.

A non-UK incorporated listed company should consider the grounds on which it is not currently eligible for inclusion in the FTSE UK Index Series. If it now meets the minimum free float requirement, it may be worth assessing whether the company can meet the remaining eligibility requirements and whether the benefits of inclusion would justify the cost and effort of taking any required steps.