Metlen Energy Faces £35m Hedge Fund Short As Shares Slide

One of the world’s largest hedge funds has placed a significant £35 million short bet against Metlen Energy and Metals only two months after the Greek group debuted on the London Stock Exchange. The move by Millennium, disclosed in filings with the Financial Conduct Authority, amounts to a short position equivalent to 0.6 percent of Metlen’s share capital.

Metlen, spearheaded by Evangelos Mytilineos, saw its euro-denominated shares decline post-listing, despite a positive initial reception that marked its switch from Athens to a primary UK listing. Shares opened at €48.68 on the first day of London trading, a gain from €47.16 in Athens, but have since slipped to €45.60. Millennium’s short suggests the fund anticipates further downward pressure on the share price.

The company’s arrival in London was widely viewed as a vote of confidence for the UK’s capital markets. Metlen, with a market capitalisation of €6.7 billion, became eligible for the FTSE 100 following recent rule changes allowing companies with euro and dollar-denominated shares to be included in UK indices. This prompted index tracking funds to buy into Metlen, providing access to a broader capital base compared with Athens, where the group maintains a secondary listing.

No new capital was raised during Metlen’s transfer to London, but the listing was timed as a potential turning point for the City after years of subdued IPO activity. Recent listings, such as Beauty Tech and forthcoming debuts from Princes and lender Shawbrook, are fuelling optimism for a broader recovery in London’s markets.

Short selling remains a common strategy among hedge funds, allowing them to profit from falling share prices by borrowing and selling shares in anticipation of buying them back at a lower value. Millennium’s position could also serve as part of an arbitrage trade, exploiting price differences between dual-listed stocks.

Metlen traces its origins to a family-run metallurgy business established in 1908 and has expanded into a blue-chip player on the FTSE 100. The New York-based Millennium hedge fund manages over $79 billion in assets. Mytilineos expressed hope that Metlen’s London listing would support a resurgence in the City’s fortunes, as the landscape for public offerings improves.