The UK Government has developed a set of proposals with London Stock Exchange to attract entrepreneurs and high growth companies to the UK.
Proposals will include a planned new route to the UK IPO market for high growth companies, which is likely to feature reformed rules on free float, eligibility criteria and reporting requirements.
This will ensure that the needs of businesses – particularly internet and technology companies – and their investors are met.
Acting as a “launch pad” for companies seeking a full Premium listing, this is aimed, in particular, at European mid-sized high growth business which are currently under-represented on the UK’s public markets.
President Obama’s JOBS Act streamlined the regulatory burden for growth companies listing on US public markets. These new proposals will now make the UK an equally attractive and competitive listing destination for high growth businesses and are part of a larger ongoing process of ensuring that public markets continue to meet the funding needs of growing, ambitious companies.
In addition, the government will also investigate the current regulatory rules that may be deterring investors from funding growth companies, and will work with London Stock Exchange to widen the availability of equity capital for both UK and international businesses looking to make the UK their global base.
Minister of State for Universities and Science David Willetts says: “There is a rich crop of innovative European high-tech companies that will be going to the financial market over the next few years. We’re determined to make sure that as many as possible should do an IPO and float in the UK, not elsewhere.
“This bold action will send a signal to entrepreneurs and investors across Europe that London’s public markets are throwing open their doors to high-growth companies.
“I have no doubt that this new route to market will help to bring new investment and new jobs to London in the months ahead.”
London Stock Exchange group chief executive Xavier Rolet says: “There is a direct and proven link between IPOs and job creation. Attracting both entrepreneurial businesses and the investors that support them to the UK is key to driving growth and generating jobs. We are delighted to be working on this package of measures with the UK Government.”
