Partner Article

New market for high growth businesses

The London Stock Exchange is about to launch a new market for high growth companies.

A new segment of the Main Market will allow high-growth businesses to list by making 10% of their company public.

The launch follows consultation of investors and the venture capital community, which revealed there are a “significant number” of UK and European businesses with ambitious development plans that are currently restricted in terms of equity markets.

Firms listing must have a historic revenue CAGR of 20% or more over a three year period.

Alexander Justham, CEO of London Stock Exchange said:“Ensuring that the UK’s fastest growing and most dynamic companies have access to equity capital is a priority for London Stock Exchange. The High Growth Segment will provide an additional attractive choice, giving these companies a launch pad for further success.”

Greg Clark MP, Financial Secretary to the Treasury said: “The government is committed to making the UK the best place in the world to start and grow a business. High growth companies are a key driver of job creation, and these companies will be vital to delivering the recovery. Government has reformed EIS, SEIS and Entrepreneurs’ Relief, to sharpen the incentives to start and invest in companies with big ambitions.

“We are delighted that London Stock Exchange is taking action to ensure that London’s public markets are organised to help these companies fuel their growth. The UK has a world leading crop of high growth businesses, and the announcement of the High Growth Segment today by London Stock Exchange is an important step in creating the right environment for them to IPO in London.”

This was posted in Bdaily's Members' News section by Tom Keighley .