The fund management and UK arm of Prudential has been valued at £5.7bn on its first day of trading on the London Stock Exchange, following a demerger from the 171-year-old insurance group.

M&G formally became a separate listed firm on Monday, focusing on what were Prudential’s UK and Europe operations. Prudential will now focus on the US, Africa and Asia.

Shares in M&G closed the day slightly below the 220p opening price at 218p, giving it a market value big enough to be eligible for the FTSE 100 index.

The decision to split Prudential, which was founded in 1848, was first announced last year, and came after the group combined its UK life insurance arm with its fund management division in 2017.

M&G made its market debut with £341bn in assets under management, and with 6,331 staff worldwide. The company serves about 5.5 million retail customers and 800 institutional clients through 20 global office operating across 28 markets.

Both Prudential and M&G remain headquartered in London.

The chief executive of M&G, John Foley, said the split was a significant milestone for his company.

He said: “Our independence and unique business mix means we are well-positioned to benefit from long-term economic and social trends that offer growth opportunities for many years to come.”