Amid the understandable hand-wringing about the future of the UK market, the addition of a new company which could soon be joining the ranks of the FTSE 100 has rather slipped under the radar.

Greek outfit Metlen Energy & Metals (MTLN) moved its primary listing from Athens to London at the beginning of this month (4 August). It appears some investors at least are cottoning on to the potential in the story with the shares up by double digits in a matter of days as I write.

This new listing may do little for the diversity of the ranks of London-listed firms given its focus on energy and commodity markets, which are already well represented.

However, these old-world economy sectors appear to be coming to the fore again – helping the FTSE 100 to its recent record highs.

Plus, in an environment dominated by high-profile exits, it is refreshing to see a business of scale head in the other direction.

Headquartered in Athens it may be, but Metlen is a global business which produces electricity from assets encompassing solar and wind farms and gas-fired power plants. It also has an aluminium, alumina and bauxite mining business.

The company is looking to expand into the production of gallium, a critical mineral for the tech sector where the supply is currently dominated by China.

In addition, it is moving into metal recycling and is seeking to gain exposure to a resurgent defence sector as it develops a large industrial site in Greece which will specialise in the construction of armoured vehicles and components for heavy military vehicles.

Morgan Stanley analyst Ioannis Masvoulas says: ‘Metlen’s target to double mid-term EBITDA (earnings before interest, tax, depreciation and amortisation) to €1.9 to €2.1 billion (before M&A) offers a unique growth narrative and is broad-based: (1) around 60% via expanding Energy, Metals and Infrastructure/Concessions; (2) around 40% via new ventures in Defence, Circular Metals and Critical Metals (gallium).’

Assuming Metlen joins the FTSE 100 as expected next month, it is likely to attract the attention of a wider audience and will also benefit from buying by tracker funds which will have to purchase the shares as they look to replicate the performance of the index.

This week’s main feature focuses on the value of attracting long-term investors to the success of listed companies and also canvasses some leading fund managers for their ‘forever stocks’ – names they plan to hold for the foreseeable future. We also take a look at the exchange-traded fund space, a quarter of a century after the first such product was launched in the UK.

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