Shares in Seraphim Space Investment Trust PLC (LSE:SSIT) flew 4.4% higher after the investor in space technology companies flagged that it will be promoted to the FTSE 250 index next week.
The trust said it will enter the mid-cap benchmark from the start of trading on Friday 19 June, following the annual FTSE Russell index review last week.
The promotion comes nearly five years after Seraphim Space's stock market debut and follows a period of growth in its portfolio and investor base, with the past quarter being its strongest ever, as the the portfolio value surged 30.7% to £433.3 million in the three months to 31 March 2026, with net asset value (NAV) per share jumping 24.8% to 177.63p.
The company recently completed a £137 million C share fundraising, one of the largest capital raises in the UK investment trust sector this year.
Management said inclusion in the FTSE 250 should increase the trust's profile among institutional investors and boost liquidity through demand from index-tracking funds.
Chair Will Whitehorn described the move as "a significant milestone" and said it reflected "the progress we have made in scaling the company over the last five years and demonstrating the attractiveness of SpaceTech as an institutional asset class".
The trust invests in privately backed businesses operating across areas including satellite communications, Earth observation, navigation and defence technologies.
Mark Boggett, chief executive of the trust's contracted investment manager, argued that space is increasingly becoming part of critical national infrastructure.
"SSIT joining the FTSE 250 reflects not only the company's progress, but the transition of space from a specialist technology theme into a core pillar of global infrastructure," he said.
"Space has become foundational to how nations operate, compete and secure their future.
"The convergence of defence, sovereign capability and data infrastructure is redefining the market, with governments globally investing in resilient space architectures for security, communications and intelligence. This is driving a structural shift where demand is long-term, procurement is strategically funded and commercial innovators are now embedded at the heart of national security systems."
Seraphim Space is the only UK-listed investment trust focused exclusively on the global 'space-tech' sector.