London Stock Exchange to offer growth firms their own market

LONDON (Reuters) - The London Stock Exchange is to launch a new niche market next month featuring less stringent listing terms for fast-growing companies wanting to raise funds on Britain's stock market.

The LSE's High Growth Segment market will allow medium-sized growth companies to go public with as little as 10 percent of their shares put on the market, unlike the LSE's main market where the normal minimum free float requirement is 25 percent.

Billed as a "stepping stone" to a premium listing, it fills the gap between the LSE's main market and its junior Alternative Investment Market (AIM) for small, growing companies which has no minimum requirement on how much of the company must be floated.

The High Growth Segment was developed in consultation with the British government, which has been considering easing listing rules for technology companies in particular since September to stem the flow of high-growth companies heading across the Atlantic in search of capital.

Companies keen to list must have achieved an annual revenue growth rate of at least 20 percent over a three-year period, be incorporated according to European Economic Area (EEA) regulations, publish an approved prospectus and offer a minimum of 10 percent of its shares in free float provided these shares are worth over 30 million pounds ($47 million).

To list on the main market, companies must make at least 25 percent of their shares freely available, unless a waiver is granted by the UK Listing Authority (UKLA).

In contrast to the UK, the United States provides a well-established hub for tech listings and has seen a continued flow of stock market flotations over the last year, while the UK has seen a drop in activity.

Europe has seen a slowdown in new listings generally over the last two years, as euro zone debt worries buffeted stock markets, and some technology firms, such as Edwards Group Ltd, ditched their attempts to go public in London in favour of the United States.

"By creating a segment we can build on the positive signs of market recovery in wider markets," Marcus Stuttard, the LSE's head of UK Markets told Reuters.

"Companies and advisers see this and the whole body of stakeholders and government backing equities. We are not gauging success simply on the number of companies in this segment," Stuttard said.

The announcement of the High Growth Segment coincided with the FinovateEurope event in London, a showcase of the latest products and services for the financial industry.

Exhibitor CurrencyFair, a Dublin-based money transfer service founded in 2009, said the LSE's new market segment was a tempting proposition.

"That would be very interesting," said Jonathan Potter, sales and finance director. "As long as the due diligence is straight forward and the costs of doing it are right."

However, others said a share market flotation was not always a good thing for developing companies, where companies cannot afford to take their eyes off the competition.

"You would distract so much attention from the business if you go public because you would be busy with your investors the whole time," said Conny Dorrestijn, marketing officer of Dutch banking software developer Five Degrees. ($1 = 0.6433 British pounds)

(Additional reporting by Kylie MacLellan; Editing by Greg Mahlich)

--

Get stories like this on the Yahoo app and discover more every day.
Download it now.
Loading...
  • Deutsche Bank shares hit historic low as bad news piles up
    Deutsche Bank shares hit historic low as bad news piles up AFP News - 5 minutes ago

    Shares in Deutsche Bank, Germany's biggest lender, sank to a historic low Monday after reports at the weekend that Berlin had refused state aid for the embattled lender. "Given the state of the news, people are selling almost in a panic," said … More »

  • Uber and Google’s Larry Page are just a few interested in vertical take-off jets
    Uber and Google’s Larry Page are just a few interested in vertical take-off jets Business Insider - 12 minutes ago

    EHang Uber wants to take your commute to … Continued The post Uber and Google’s Larry Page are just a few interested in vertical take-off jets appeared first on Business Insider. … More »

  • Pfizer, banks lead Wall Street lower; presidential debate eyed
    Pfizer, banks lead Wall Street lower; presidential debate eyed Reuters - 13 minutes ago

    Pfizer fell 1.5 percent after it decided against splitting into two. Deutsche Bank's U.S-listed shares fell as much as 7.1 percent to a record low of $11.84 and triggered declines among big Wall Street banks after a German magazine said Chancellor … More »

  • Centrica in process of selling Canada oil and gas assets - spokesman Reuters - 18 minutes ago

    Centrica (CNA.L), Britain's largest utility company, is in the process of selling all of its Canadian oil and gas assets and exiting operations in the country, a company spokesman said on Monday. Centrica and its joint venture partner, Qatar … More »

  • AP Top Extended Financial Headlines at 12:57 p.m. EDT Associated Press - 22 minutes ago

    Sales of new homes down 7.6 percent in August; nearly all regions post declines … More »

  • Oil prices rally before Algiers meeting AFP - 24 minutes ago

    Oil prices jumped around 3.0 percent in value Monday as the dollar weakened before a meeting of crude producing nations in Algeria to discuss a stubborn supply glut. Against a backdrop of depressed prices ... … More »

  • EU launches debit cards for refugees in Turkey
    EU launches debit cards for refugees in Turkey AFP News - 28 minutes ago

    The European Union on Monday launched a scheme worth almost 350 million euros providing mainly Syrian refugees in Turkey with pre-paid debit cards, the biggest project yet under a landmark deal between the bloc and Ankara. EU Humanitarian Aid … More »

  • Almost all education research takes place in the US — but another country is using it better
    Almost all education research takes place in the US — but another country is using it better Business Insider - 30 minutes ago

    Reuters/Vesa Moilanen Year after year, Finland is ranked … Continued The post Almost all education research takes place in the US — but another country is using it better appeared first on Business Insider. … More »

  • SWIFT says bank hacks set to increase
    SWIFT says bank hacks set to increase Reuters - 32 minutes ago

    SWIFT, whose messaging network is used by banks to send payment instructions worth trillions of dollars each day, said three clients were hacked over the summer and cyber attacks on banks are set to increase. The theft of $81 million in February … More »

  • Lanka IOC says diesel tax increase will hit earnings
    Lanka IOC says diesel tax increase will hit earnings Reuters - 33 minutes ago

    The Sri Lankan government's decision to increase tax on diesel is likely to hit 2016/17 second-half earnings at fuel retailer Lanka IOC, its managing director said on Monday. Under pressure from the International Monetary Fund to increase revenue, … More »

  • Global stocks slide after Fed-inspired rally
    Global stocks slide after Fed-inspired rally AFP News - 51 minutes ago

    World stock markets slumped Monday as a crash in Deutsche Bank's shares offset a surge in German business confidence and the two US presidential candidates headed into their debut debate. Shares on Wall Street fell more moderately, as Hillary … More »

  • Another wave of retrenchments hits Penang manufacturing sector Business Times - 55 minutes ago

    GEORGE TOWN: Another wave of retrenchments has apparently hit Penang’s manufacturing sector, with a sudden announcement to over 200 employees that they are out of jobs. Business Times has obtained a memo purportedly sent out this afternoon by TS … More »

  • 9 innovative features in the 2017 Chevy Volt
    9 innovative features in the 2017 Chevy Volt Business Insider - 58 minutes ago

    Cadie Thompson/Tech Insider You don’t have to spend … Continued The post 9 innovative features in the 2017 Chevy Volt appeared first on Business Insider. … More »

  • UK mortgage approvals hit 19-month low, more weakness seen
    UK mortgage approvals hit 19-month low, more weakness seen Reuters - 1 hour 6 minutes ago

    Britain's housing market showed signs of slowing in August with the number of mortgages approved by banks falling to its lowest level since January 2015 and analysts said they expected further weakness ahead as Brexit uncertainty dampens demand next … More »

  • Rio Tinto aims to cut debt with bond buyback Reuters - 1 hour 7 minutes ago

    Rio Tinto (RIO.L) (RIO.AX) on Monday announced a bond buyback plan for up to $3 billion, saying it was using spare cash to further cut its debt. Compared with other miners, Rio Tinto has a strong balance sheet and earlier this year completed $4.5 … More »

  • FTSE scores worst day in three months, downgrades weigh
    FTSE scores worst day in three months, downgrades weigh Reuters - 1 hour 14 minutes ago

    By Atul Prakash LONDON (Reuters) - Britain's top share index fell on Monday and made its worst one-day performance in three months, with Lloyds (LLOY.L) pushing banks lower after a downgrade by Goldman ... … More »

  • Will boom in loans at retailers, manufacturers turn to bust?
    Will boom in loans at retailers, manufacturers turn to bust? Associated Press - 1 hour 16 minutes ago

    They sell diamond rings in malls and used cars at dealerships, make wrench sets for mechanics and giant combines for farmers. Not one has "bank" in its name, but they are all big lenders, and ... … More »

  • Asia’s Hunger for Yield Tested by Junk-Rated Casino’s Bond Plan Bloomberg - 1 hour 19 minutes ago

    Hong Kong-listed casino operator Imperial Pacific International Holdings Ltd. plans to sell dollar bonds for the first time to fund its casino resort in Saipan Island, a U.S. territory in the Pacific Ocean, according to a bond document. The bond is … More »

  • Deutsche Bank Says Fixed-Income ETFs Neglecting Asia Miss Chance Bloomberg - 1 hour 19 minutes ago

    ‘‘Most of the fixed-income ETFs tend to just focus on developed markets or U.S. corporate bonds,” said Marco Montanari, head of passive asset management, Asia Pacific at Deutsche Bank, which this month started a fixed income ETF providing exposure … More »

  • UBS, JPMorgan Can’t Match China Bank IPO Bonanzas of Decade Ago Bloomberg - 1 hour 19 minutes ago

    When China’s fifth-largest bank priced its $7.4 billion share sale last week, UBS and JPMorgan snared 5 percent paper gains on investments made nine months earlier. The shares will start trading in Hong Kong on Wednesday after being priced near the … More »

  • Markets Right Now: US stocks open lower Associated Press - 1 hour 21 minutes ago

    The latest on developments in global financial markets (all times local): 11:45 a.m. U.S. stocks are slumping in midday trading, led by declines in banks and drugmakers. Oil and gas companies bucked the ... … More »

  • Iran says has freed Iranian-Canadian academic
    Iran says has freed Iranian-Canadian academic AFP News - 1 hour 28 minutes ago

    Iranian-Canadian anthropologist Homa Hoodfar who was arrested and jailed in Tehran in June for "security offences" has been released and has left the country, the foreign ministry said on Monday. Hoodfar travelled to Oman and on to Canada, he said. … More »

  • Here’s what cities could look like in 10 years
    Here’s what cities could look like in 10 years Business Insider - 1 hour 29 minutes ago

    Skye Gould/Samantha Lee/Business Insider The data confirm it: … Continued The post Here’s what cities could look like in 10 years appeared first on Business Insider. … More »

  • EU's "sharing economy" stifled by petty rules on coat hangers to light bulbs
    EU's "sharing economy" stifled by petty rules on coat hangers to light bulbs Reuters - 1 hour 30 minutes ago

    Europe's bid to champion the "sharing economy" is being undermined in the short-term rental sector by capitals imposing petty rules such as dictating the number of coat hangers home-owners must provide, a complaint filed to the European Commission … More »

  • LVMH's digital drive takes time despite Apple hire Reuters - 1 hour 33 minutes ago

    When LVMH hired former Apple music executive Ian Rogers to craft a digital strategy, investors may have hoped for some quick results. Almost a year later, aside from drafting in more digitally-savvy people and taking part in a technology start-up … More »

 
Recent Quotes
Symbol Price Change % Chg 
Your most recently viewed tickers will automatically show up here if you type a ticker in the "Enter symbol/company" at the bottom of this module.
You need to enable your browser cookies to view your most recent quotes.
 
Sign-in to view quotes in your portfolios.

MARKET MOVERS

  • Most Actives
    Most Actives
    NamePriceChange% Chg
    0.138+0.002+1.47%
    N21.SI
    0.74+0.02+2.78%
    BS6.SI
    0.141-0.002-1.40%
    5DM.SI
    0.265-0.005-1.85%
    5ME.SI
    0.355-0.005-1.39%
    E5H.SI
  • % Gainers
    % Gainers
    NamePriceChange% Chg
    0.225+0.025+12.50%
    BTF.SI
    0.475+0.050+11.76%
    AWC.SI
    0.147+0.011+8.09%
    5NF.SI
    0.60+0.04+7.14%
    BDR.SI
    0.195+0.013+7.14%
    43B.SI
  • % Losers
    % Losers
    NamePriceChange% Chg
    0.345-0.060-14.81%
    BLR.SI
    1.16-0.20-14.71%
    P01.SI
    0.164-0.026-13.68%
    AWI.SI
    0.22-0.03-12.00%
    BJD.SI
    0.425-0.055-11.46%
    BLL.SI

Market Data

  • Currencies
    Currencies
    NamePriceChange% Chg
    1.3603+0.0022+0.16%
    USDSGD=X
    1.5307+0.0071+0.47%
    EURSGD=X
    1.7646+0.0074+0.42%
    GBPSGD=X
    73.7060-0.416-0.56%
    SGDJPY=X
    5.6996-0.0059-0.10%
    SGDHKD=X
    3.0345+0.0077+0.25%
    SGDMYR=X
    9,579.9111-75.6221-0.78%
    SGDIDR=X
    4.9026-0.004-0.08%
    SGDCNY=X
    1.0387+0.0037+0.36%
    AUDSGD=X
  • Commodities
    Commodities
    NamePriceChange% Chg
    1,344.10+2.40+0.18%
    GCZ16.CMX
    19.60-0.21-1.06%
    SIZ16.CMX
    95.17-0.59-0.62%
    ^XAU
    2.200.00-0.16%
    HGZ16.CMX
    43.85+0.41+0.94%
    CLV16.NYM
  • Bonds
    Bonds
    TreasuryYield (%)Yield Change
    1.12-0.04
    ^FVX
    1.58-0.04
    ^TNX
    2.31-0.03
    ^TYX