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Volex Eyes FTSE 250 Amid AI-Driven Sales Surge
8 Apr
Summary
- Volex plans to move to the main market before August 4.
- Data centre division sales are expected to double this year.
- Shares have more than doubled in value over the past year.
Nat Rothschild's power cable manufacturer, Volex, is aiming for a significant upgrade to the FTSE 250 index. The company intends to apply to the City watchdog for a move from London's junior AIM market to the main market by August 4. Volex's current valuation is just under £900 million, exceeding the market capitalization of several existing FTSE 250 constituents.
This strategic move is bolstered by exceptional performance in its data centre division. Volex anticipates its full-year sales in this segment will double from the previous year's £89.13 million. This surge is directly attributed to the rapidly increasing demand for artificial intelligence infrastructure. The company also launched a share buyback program worth up to £40 million, set to conclude by the end of March 2027, signalling confidence in its future prospects.
