Trying to grow our own Apples, Googles and Amazons

The LSE's new high growth segment.

With the launch of the London Stock Exchange’s High Growth Segment set for March, it appears that UK technology companies of all sizes will have a domestic listing to suit their needs. The High Growth Segment has been launched to appeal to technology and other growth companies that want to list in London but may not wish to apply for a Premium Listing (be it for eligibility or regulatory reasons) but would like an alternative to AIM, the London Stock Exchange’s junior market..

There is a popular belief that the UK capital markets are not supportive of technology companies and that there has been a flight of UK technology companies to list in the US. However, our analysis indicates that in fact no UK technology companies have listed in the US in the last three years; whereas during the same period more than 30 UK technology companies listed on AIM.

It appears, then, that smaller UK technology companies have already recognised the appeal of listing in London rather than in the US.

Smaller UK technology companies have, for some while, been choosing London rather than the US as their preferred listing destination and AIM can be seen to be doing its job as an incubator for UK companies. At the same time there has been a paucity of listings of larger companies both here and in the US. What is exciting about the launch of the High Growth Segment is that larger UK technology and other growth companies now have a real alternative to a Premium listing or joining AIM.

This can only be a good thing for London. Indeed, the London Stock Exchange has opened the High Growth Segment up to companies that are incorporated anywhere in the EEA, not just the UK. The expectation is, therefore, that European companies will also consider joining the High Growth Segment, further demonstrating London’s position as the leading European equity market.

What is key to this new initiative is that it provides another option to larger technology companies who wish to raise capital. UK technology companies have largely sought growth funding from the debt markets or from private equity. The High Growth Segment offers a real funding alternative.

The rest of this article can be read on economia.

John Hammond is an equity capital markets partner at Deloitte.

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The NS Podcast #169: Traingate, gaffes and Ghostbusters

The New Statesman podcast.

This week, Helen and Stephen tackle Traingate and Lunaticgate. George Eaton comes down-the-line from the valleys with the latest on the Owen Smith campaign. Anna Leszkiewicz joins to discuss feminism in the new Ghostbusters film. And you-ask-us: what is the role of the John McDonell in the Corbyn ménage? (Helen Lewis, Stephen Bush, George Eaton, Anna Leszkiewicz) 

Links:

Traingate (01.24)
Stephen on Jennifer's Ear

Lunaticgate (05.20)
David Wearing on Smith's slurs and empty promises.

Owen Smith (11.36)
George's interview for this week's magazine

Ghosbusters (18.44)
Ryan Gilbey reviews the film
Listen to the SRSLY take 
Anna on the dark side of the Romcom

John McDonnell (31.17)
Read him in his own words
And watch him in action

You can subscribe to the podcast through iTunes here or with this RSS feed: http://rss.acast.com/newstatesman, or listen using the player below.

And if you're craving yet more NS podcastery, you can watch Helen and Stephen host a live recording at this summer's London Podcast Festival. Tickets available here

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