Following the announcement last September that the government was encouraging the London Stock Exchange ("LSE") to relax its rules for tech companies, the LSE last week formally announced its plans for a new High Growth Segment of the Main Market. Aimed at companies with a market cap of between £300 - 600 million, there are high hopes that this new market will fill the perceived gap between AIM and the Premium Segment of the Main Market and, in doing so, will allow London to give NASDAQ a run for its money.
The key selling point is the reduced minimum free float requirement - 10% rather than the 25% required by the Main Market. Combined with the perception of Main Market respectability, the hope is that the LSE can attract home-grown and EU fast-growing tech companies to match the big names seen across the pond - the next generation of Amazons, Facebooks and Googles.
The LSE has published a draft rulebook and invited feedback by 8 March 2013.
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