The London Stock Exchange has recently announced details of its new “High Growth Segment” (“HGS”), a new segment of the main market suitable for high growth companies. It has been designed by the London Stock Exchange “to meet the needs of fast-growing companies aspiring to be included in the Premium segment of the UKLA’s Official List”. It is hoped that it will provide greater choice for high growth companies with ambitious development plans, and operate as a halfway house between the UK’s junior market for small enterprises, AIM, and the main market of the London Stock Exchange.
Eligibility criteria for the HGS include:
- A minimum free float of 10 per cent and a value of at least £30 million (so that founders and their private equity investors will be able to retain up to 90% of the business);
- Historic revenue growth of 20 per cent or more over a three year period;
- An active, EEA incorporated, commercial company issuing equity shares only;
- Publication of an approved prospectus.
Companies will be required to clearly set out their intention to progress to the main market of the London Stock Exchange over time as they become eligible.
Links to the London Stock Exchange announcement and to the draft HGS Rulebook are below. Comments are invited on the draft Rulebook by close of business on 8 March 2013.