The London Stock Exchange ("LSE") announced yesterday that the new High Growth Segment to its Main Market is now open for admission to trading. It has also published the new rules for the High Growth Segment following feedback from stakeholders, along with a template application form, eligibility letter, issuer declaration and "Key Advisor" declaration.
The new rules for the High Growth Segment have not changed substantively from the draft released by the LSE last month, other than:
- an amendment to the definition of "CAGR" to clarify that a four year range of financial data is required to demonstrate the 20% growth in audited consolidated revenue over a three year period; and
- to clarify the position for reverse takeovers, including the specific requirement that issuers must send an explanatory circular to shareholders and seek their approval for a reverse takeover, rather than seeking their approval for cancellation of admission.
As set out in our e-alert from last month, the High Growth Segment is aimed at fast growing companies seeking to join the Main Market, but which are not yet eligible for a Premium Listing on the Official List due to their size and stage of development. Companies will be able to seek admission to the High Growth Segment with a free float as low as 10% (valued at not less than £30 million). Other eligibility criteria includes:
- being a trading company incorporated in an EEA state;
- having equity shares only;
- having a revenue generating business with historic revenue growth of 20% (CAGR) over a three year period; and
- appointing a Key Adviser who is already an appr
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