Floating On The
London Stock Exchange's
Main Market
Technical Connectivity: Excellent
Investor Reach: Worldwide
Prospectus Needed: Yes
Overall Listing Project Cost €/$: 350,000
Dual Listing: Many Dual Listing Options
The Main Market is the London Stock Exchange’s flagship market and the largest in the UK by value of the companies listed. This globally recognised financial hub is home to more than 1,000 companies from 100 countries and no fewer than 40 business sectors. Many enterprises aspire to be admitted to the Main Market.
Here’s what Sebastian says:
“A top regulated market and one of the major stock markets in the world. If you want a premium listing this is it.”
The Main Market is the London Stock Exchange’s flagship market and the largest in the UK by value of the companies listed. This globally recognised financial hub is home to more than 1,000 companies from 100 countries and no fewer than 40 business sectors. Many enterprises aspire to be admitted to the Main Market.
Why Consider The London Stock Exchange Main Market?
From its roots in London coffee houses in the late 17th century, the London Stock Exchange’s Main Market has developed into one of the world’s most important stock markets. Companies from the UK and worldwide benefit from the opportunity to raise significant investment capital at the time of floatation and later through subsequent fundraisings.
There are three segments within the Main Market, each tailored to different capital raising requirements.
Premium Main Market: Companies have to meet the highest listing standards above those set out in EU legislation, including the UK’s corporate governance code. A premium listing gives issuers access to a greater spread of investors and the chance to be included in FTSE UK indices. Among them are the FTSE 100, FTSE 250 and FTSE Small Cap Indices.
Standard Main Market: Companies have to meet core European listing standards set by EU legislation.
High Growth Segment: A dedicated launchpad for high-growth companies to increase their visibility with the analyst and investor community and raise their profile among customers and suppliers.
Among the other benefits of trading here is that companies have a platform to broaden their shareholder base while retaining control of their business.
London Stock Exchange Main Market Criteria List
To take advantage of the Main Market’s many opportunities, companies have to fulfil specific eligibility criteria. The principal requirements you must meet to be considered for a listing include:
- Companies have to apply to the FCA (Financial Conduct Authority) and the London Stock Exchange.
- In general, companies must have three years of audited historical information. However, this rule can be relaxed if the UKLA (UK Listing Authority) is satisfied that investors have enough information to make informed decisions about the issuer and the securities they're hoping to list.
- Submission of the company's latest accounts that are no more than 18 months old (if audited interims are included) or 15 months (if unaudited interims are included).
- Companies should have at least £700,000 for shares (market capitalisation) at the time of admission.
- Shares must be freely transferable.
- Companies have to provide a working capital statement for 12 months following admission.
- Preparing and publishing a prospectus vetted by the UKLA.
- At least 25% of shares must be in the general public's hands in one or more EEA (European Economic Area) states.
- Companies applying for a Premium Listing must have a sponsor to advise on listing rules and give the necessary reassurances to the UKLA. This is not a requirement for a Standard Listing.
- Shares have to be eligible for electronic settlement.
London Stock Exchange Main Market Important Points of Interest
- Companies have access to the deepest pool of capital in Europe. More than 5,000 pension, insurance and investment funds use the Main Market to invest in listed companies.
- Main Market listing companies can undertake further fundraisings post-admission. Often these are quicker and more cost-effective than the initial IPO.
- Typically, companies can achieve a Standard Listing within six months of undertaking the feasibility stage.
- The cost of a Standard Listing is affected by several factors, including the company's size, its preferred route to market, the amount of funding raised, and the management team's preparedness to start the floatation process.
- Listing on the Main Market can significantly boost a company's credibility and profile among new and existing customers and suppliers.
