LSE Issues Rule Revisions For Consultation

The London Stock Exchange today published a consultative document on proposed changes to the Listing Rules. The most significant proposal is the introduction of a new concessionary route to listing for innovative high growth companies without the normal three-year trading record. Launching the consultative document today, Paul Geradine, Head of Listing, said: "The proposed new rules will enable high growth companies with an innovative product or service to access our main market at an early stage in their development. The proposals, when taken with the techMARK initiative announced today, underline our commitment to young, innovative high growth companies." The key features of the proposed concessionary route, which will form a new chapter in the listing rules (chapter 25), are: a requirement for a minimum £50m market capitalisation on float; a requirement to sell on flotation at least £20m either new or existing shares; enhanced prospectus disclosure requirements; and an obligation to provide quarterly financial reports. Other key proposals in the Listing Rule consultation document include: enhanced disclosure standards for interim and preliminary results - companies will now be required to publish interim results within 90 days (currently four months) and preliminary results within 120 days (currently no specified limit, although annual accounts must be published within six months); fuller disclosure of companies' underwriting arrangements to reflect the recommendations made in February by the Monopolies and Mergers Commission; to underpin our existing requirements to publish all price sensitive information without delay, a new rule explicitly stating that companies should not issue misleading or deceptive announcements or conceal material information. The consultative document has today been sent to market participants for comments. Full details of all the proposed changes contained in the consultative document are available on the UK Listing Authority Website www.listing.co.uk. Comments on the proposals should be submitted by 29 October 1999 and it is anticipated that the rule changes will be effective in early 2000. Comments can be submitted by letter, fax, and email or directly from the website.