Analysis by Deloitte, the business advisory firm, shows that only six companies have taken advantage of the new standard listing option, introduced in April 2010, to provide UK companies with the opportunity to seek a regime with less regulatory complexity, previously only open to overseas companies.
The principle change made to the Listing Rules, was to reclassify the listing regime into new categories of listing comprising of a “premium” listing, the “gold standard” previously known as a primary listing, and a “standard” listing, previously known as a secondary listing. As well as providing a new listing option to UK companies, the regime was introduced to improve transparency between the types of listing that a company had.
John Hammond, capital markets partner at Deloitte, comments: “Of those companies that have taken advantage of the standard listing route, most would not have been eligible for a premium listing. To that extent, the changes have been beneficial in providing another route to market and have provided a simplified route to listed company status for new applicants. This may indeed provide a stepping stone to a premium listing for some companies.
“It is clear however, that the standard listing route is not being chosen by companies that have the option of a premium listing which is viewed as significantly more attractive – as well as affording investors greater protection and confidence.”
