Bold action taken to open London’s equity markets and unlock business potential
British government consults London Stock Exchange and reveals ambitious proposal to attract entrepreneurs and high-growth companies.
The Department for Business, Innovation and Skills have announced the government’s ambitious plan to make Britain “one of the best places in the world to start, run and grow a business”.
Acting as a launch pad for companies seeking a full Premium Listing, the proposal is aimed at European mid-sized high-growth businesses. The government feels these are currently under-represented on the UK's public markets.
The proposals will include a planned new route to the UK IPO market for high-growth companies. This is likely to feature reformed rules on eligibility criteria and reporting requirements.
The new route is intended to ensure that the needs of businesses and investors, particularly in internet and technology sectors, are met.
"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”, London Stock Exchange Group Chief Executive, Xavier Rolet said.
Through the London Stock Exchange’s markets, the Group offers international business unrivalled access to Europe’s capital markets.
The government plan to investigate the current regulatory rules that may be deterring investors from funding growth companies. It will work with London Stock Exchange to widen the availability of equity capital for both UK and international businesses that look to make the UK their global base.
“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", Minister for Universities and Science, David Willetts concluded.