LinkedIn
Burges Salmon on Twitter
The FCA has today confirmed that, following the recommendations made in the UK Listing Review and the Kalifa Review of UK FinTech, a number of changes will be made to the UK Listing Rules. The changes will take effect from 3 December 2021 and are focused on companies planning to IPO in 2022. This follows the FCA's consultation which took place earlier this year: see UK Listing Rules: targeted changes to remove barriers to listing in London (burges-salmon.com)
The news is well timed given the headline in the FT today: London is becoming the Jurassic Park of stock exchanges | Financial Times (ft.com). Clearly the changes being introduced today are designed to ensure that does not happen.
What are the key changes?
The FCA is making the following changes to the Listing Rules:
- a targeted form of dual class share structure within the premium listing segment;
- a reduced level of shares required to be in public hands at listing to 10% from the current requirement of 25%;
- an increased minimum market capitalisation threshold for listing to £30 million, for shares in companies other than funds; and
- minor modernisation to the Listing Rules, Disclosure Guidance and Transparency Rules and Prospectus Regulation Rules.
What is the FCA trying to achieve with these rule changes?
The new rules are designed to boost growth and innovation on UK stock markets. The press release issued by the FCA makes it clear that the FCA wants to "ensure that the UK’s public markets remain a trusted and attractive place to list successful companies, providing opportunities for companies to grow from which investors will benefit."
If you would like to discuss the new rules please contact Nick Graves or another member of the Burges Salmon Corporate Group.
Clare Cole, Director of Market Oversight at the FCA commented on the changes: "We need to act to meet the needs of an evolving marketplace. These changes ensure the UK's markets maintain their reputation for dynamism, helping support the new types of companies seeking the investment that drives economic growth and by giving investors more choice with appropriate protection." "Over the last few months, we have moved quickly to address areas where our rules could be improved to encourage innovation in primary markets. By taking this agile approach, we are pleased that new IPOs in 2022 will be able to benefit from the revised rules."
unknownx500
