Sports Direct is set to move up to the FTSE 100 next month after its shares surged more than 70% since the start of the year.

The retailer, founded by Mike Ashley, floated in 2007 at 300p a share but is now valued at 663½p, giving it a market value of almost £4bn.

The soaring valuation has put Sports Direct in line for elevation to the FTSE 100, which is determined by companies’ market capitalisation, next month.

The move would mean that funds tracking the FTSE 100 would be required to buy the stock.

Demand for the stock has been fuelled by Sports Direct’s soaring profits. Last month, the retailer reported pre-tax profits jumped 40% to £207.2m.