UK regulator sets out plans to encourage IPOs in London

Source: The Star

LONDON: The United Kingdom's finance regulator sets out its latest plans to simplify its listings regime and revive interest in London's stock markets.

The Financial Conduct Authority (FCA) confirmed on Tuesday that it would replace the standard and premium listings rules with one set of "streamlined eligibility and ongoing requirements", in keeping with proposals announced in May.

The watchdog also stuck to its plan to let companies in the United Kingdom carry out certain actions such as related-party transactions without a mandatory shareholder vote, a restriction that was cited as one of the reasons behind Arm Holdings Plc's decision not to list in London earlier this year.

"We are working to strengthen the attractiveness of UK capital markets and supporting UK competitiveness and growth," Sarah Pritchard, the FCA's executive director, markets and international, said in a statement.

"It is important that others consider what they in turn can do."

Only a handful of companies have listed shares in London this year, despite several attempts to shake up the market and encourage more fundraising.

Cambridge-based technology company Arm chose New York for its return to the stock market, after owner SoftBank Group Corp spurned calls from the United Kingdom government for a dual listing.

The FCA offered Arm "certain modifications" to its listing rules as part of attempts to bring the firm back to the London market, the United Kingdom regulator's chief executive officer Nikhil Rathi said in March.

Earlier on Tuesday, SoftBank founder Masayoshi Son and Arm boss Rene Haas were pictured at Downing Street, although, even with the rule changes, few expect the company to reconsider a secondary listing in London any time soon.

Spokespeople for SoftBank and Arm declined to comment.

Miles Celic, chief executive officer of lobby group TheCityUK, welcomed the FCA's latest proposal.

"A more accessible, effective and competitive listing regime will help to enhance the United Kingdom's attractiveness as a prime listing destination, and spur economic growth," he said in a statement. -- Bloomberg