16 corporate finance


companies The Government has announced a new IPO route to the UK stock market for entrepreneurs and high- growth companies in association with the London Stock Exchange. James Klein of Penningtons Solicitors LLP examines the proposals


These measures are aimed at international (mainly European) mid-sized high-growth companies, particularly within the internet and technology sectors, which are seeking to list on the UK’s public markets in order to expand and fund dynamic, fast- growing businesses and meet the needs of their investors.


The Government has indicated that the proposals are likely to include reformed rules on free float (currently, at least 25% of the shares of a company applying for a premium listing must be held by the public in one or more EEA states at the time of listing), listing eligibility criteria and reporting requirements. The new proposals will sit alongside the FSA’s ongoing consultation on wider issues relating to the UK listing regime. Further details are expected to be published before the end of 2012, and it is likely that a consultation period will follow.


The aim of these proposals is to make the UK the most globally attractive and competitive marketplace to set up, run and develop a business. By attracting high-growth companies to list their shares in the UK, the Government will stimulate growth in the UK economy and generate jobs for the British public. The new route will complement the UK’s existing markets and entice investors looking to fund early-stage technology companies who wish to make the UK their global base.


It forms part of an overall


objective for the Government to reduce regulatory burdens for investors and make equity capital more available for British and international businesses. The proposals mirror president Barack Obama’s JOBS Act, which sought to cut red tape for small companies going public on the US markets.


www.businessmag.co.uk


Marine industry advised to take advantage of grants


As successful marine businesses from the Solent head for the Tullett Prebon London Boat Show from January 12-20, they need to take advantage of grants and advice available to them if they are to prosper in the future.


The Government envisages that ’young’ tech companies will now be more likely to list their shares on the UK public markets rather than seek to finance their rapid expansion in the US. We may not see any discernible change until market conditions improve but the proposals of more relaxed eligibility requirements and less onerous rules on free float combined with the reassurance of the governance framework offered by a listing on the main market will surely be an attractive proposition to many early-stage tech companies.


James Klein (partner) is head of the technology group at Penningtons and also head of the London corporate team.


Details: James Klein 020-7457-3207 james.klein@penningtons.co.uk www.penningtons.co.uk


For small or medium- sized manufacturers in the region, many of these services are free and supported by appropriate grant funding


Grant Thornton warned that many marine manufacturers are not aware of government help that can help them grow and prosper on a global scale. The UK leisure marine sector is worth £2.9 billion to the economy, with around 4,200 companies employing more than 31,000 people. The south contributes to 61% of the £2.9b generated by the sector in the UK (South East 31%, South West 30%).


Nigel Stuart (pictured), managing director of Discovery Yachts, a Southampton-based business which produces 10 yachts each year and employs more than 100 people, said: “The UK has built up a reputation for producing quality yachts and powerboats; the important message for the UK marine sector is to make the most of its collective UK brand.


“This is where government support promoting the UK’s excellence in quality and luxury to the rest of the world is vital. The marine sector has an


THE BUSINESS MAGAZINE – SOLENT & SOUTH CENTRAL – DECEMBER 12/JANUARY 13


opportunity to make significant increases in exports, but we need the Government to seize the opportunity now.“


Added Amanda James, manufacturing sector specialist at Grant Thornton, Southampton: “There is growing demand for British-manufactured products in the EU and emerging markets, but access to finance, vital for investment in new equipment and technologies, is incredibly tough.“


The Manufacturing Advisory Service (MAS), a national support service delivered locally by experienced advisers, is working hard in the south to help marine manufacturers take a business- wide, strategic view of their company, identifying and dealing with obstacles to growth and market opportunities. For small or medium-sized manufacturers in the region, many of these services are free and supported by appropriate grant funding.


New IPO route for high-growth


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