For long term holders, inclusion in the ASX200, ASX100, ASX50,...

  1. 87 Posts.
    lightbulb Created with Sketch. 158
    For long term holders, inclusion in the ASX200, ASX100, ASX50, and then the ASX20 would spell out that there had been phenomenal success for the company.

    However, I don't think that absolute market capitalisation is the only factor that forms part of the consideration for entering these indices. Having done extensive investigation (consulted Wikipedia), there is a weighting given to the market cap based on the following:

    "A stock's weight in the index is determined by the float-adjusted market capitalization of the stock. This is a function of current index shares, the latest available stock price and the Investable weight factor (IWF). The IWF represents the float-adjusted portion of a stock's equity capital.... Shares owned by founders, directors of the company ... are also excluded. These are also deemed strategic holders, and are considered long-term holders of a stock's equity. Any strategic shareholdings that are greater than 5% of total issued shares are excluded from the relevant float."

    In the case of PPK, directors hold 25% of shares, these exclusions are significant relative to many other companies of similar market cap, and hence their absolute market cap needs to be much higher (by one-third) relative to these other companies to meet the weighted capitalisation test. For example, if $2b is the relevant market cap for the ASX200, then PPK would need to be at $2.66b to be equivalent. Then there is a liquidity test as well.

    Just something to consider.
 
Add to My Watchlist
What is My Watchlist?
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)
Last
32.5¢
Change
-0.025(7.14%)
Mkt cap ! $29.51M
Open High Low Value Volume
35.0¢ 35.0¢ 31.5¢ $26.10K 80.71K

Buyers (Bids)

No. Vol. Price($)
1 57170 31.5¢
 

Sellers (Offers)

Price($) Vol. No.
36.0¢ 44961 1
View Market Depth
Last trade - 16.10pm 07/07/2025 (20 minute delay) ?
PPK (ASX) Chart
arrow-down-2 Created with Sketch. arrow-down-2 Created with Sketch.