UK to ease rules for tech share listings

Britain plans to make it easier for technology firms to list their shares in London, the Government said yesterday, in an attempt to stem the flow of high-growth companies that are heading across the Atlantic in search of capital.

Europe has seen a slowdown in initial public offerings (IPOs) generally over the last two years, as eurozone debt worries buffeted stock markets, and some technology firms have ditched their attempts to go public in Europe in favour of the United States – a more well-established hub for tech flotations.

“There is a rich crop of innovative European high-tech companies that will be going to the financial market over the next few years.

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“We’re determined to make sure that as many as possible should do an IPO and float in the UK, not elsewhere,” David Willetts, Minister of State for Universities and Science, said.

Plans developed with the London Stock Exchange will likely include a new route to the stock market for high growth companies, particularly internet and technology businesses, and changes to rules on free float, eligibility criteria and reporting requirements.

The aim is that this route will act as a ‘launch pad’ for European mid-sized high growth businesses seeking a full premium listing on London’s main market, the Government said.

The move follows US President Barack Obama’s JOBS Act earlier this year, which reduced the regulatory requirements for small companies going public on US stock exchanges.