England’s financial watchdog is making it easier for technology companies to list shares on the London Stock Exchange.
To strengthen London’s ability to compete with New York and the European Union (EU) following Brexit, the Financial Conduct Authority (FCA) has proposed allowing dual class share structures for "innovative, often founder-led companies" for the first five years of a listing on the London Stock Exchange's premium segment.
Dual class share structures allow company founders to maintain control at the expense of ordinary shareholders and are popular in New York and Amsterdam, the EU's top stock trading centre.
The FCA is also proposing cutting the number of shares that must be made available to the public or free float to 10% from 25%. The minimum market capitalization for both the premium and standard segments for ordinary commercial companies would be raised to 50 million British pounds ($69 million U.S.) from 700,000 British pounds previously.
Cutting the free float while raising the minimum capitalization would also put London in line with New York.
Britain's share of global IPOs has been falling rapidly in recent years, the FCA said. The London Stock Exchange said the proposals were crucial to ensuring that Britain remains one of the world's leading financial centres.
