Kavan Choksi Sheds Light on the Main Market of the London Stock Exchange

791 Views

The Main Market of the London Stock Exchange is one of the most diverse stock markets of the world with companies making up 40 different sectors. It is a UK regulated market that is majorly reserved for larger, more established companies. A renowned Kavan Choksi mentions that companies need to fulfill a range of requirements in order to join the main market of the London Stock Exchange or LSE. A listing on the LSE’s Main Market provides companies access to real-time pricing, considerable levels of levels of media coverage, deep pools of capital, and benchmarking through the FTSE UK Index Series.

Kavan Choksi talks about the ways to join the main market of the London Stock Exchange

Joining the main market of the LSE can help a business to grow by creating more capital to expand or develop services or products offered by them. However, before getting a business to float on the stock market, it must be valued independently. One must also decide what percentage of their business they are willing to make available for sale on the stock market by issuing shares equal to that value.

To join the Main Market a business must meet certain requirements set out in the London Stock Exchange’s Admission and Disclosure Standards. There are many ways for companies to join the Main Market of the LSE, including the following:

Premium: The premium segment applies only to equity shares that are issued by commercial trading businesses. Premium listing issuers have to meet the super-equivalent rules of the United Kingdom, which tend to be higher than the minimum requirements of the European Union (EU). Owing to these high standards, premium listed companies may have access to a lower cost of capital and to investors who are searching for companies that adhere to the highest possible standards. A company that has a premium listing also enjoys the probability of getting included in one of the FTSE indices.
Standard: The standard segment is open to the issue of equity shares, debt securities, Global Depositary Receipts (GDRs), and derivatives that have to comply with EU minimum requirements. The compliance burden on the while is lighter for companies with a Standard listing. A standard listing is known to aid companies from emerging markets to attract investments from the large pool of available capital in LSE.
Other Segments: The Specialist Fund Segment and Higher Growth Segment are known to be designed particularly for high growth, revenue-generating businesses, as well as specialized investment entities that target professionally advised investors or institutional investors. The High Growth Segment is meant for companies that are not eligible for a Premium or Standard listing but has plans to seek funding to grow their companies.

As per Kavan Choksi the London Stock Exchange Main Market works by offers a single or multiple units of a business to potential investors, usually in the form of ‘securities’. There are a number of securities that can be listed on the Main Market, including shares, depository receipts, debt securities, and investment entities.