London Stock Exchange proposes special listing for private companies

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London Stock Exchange proposes special listing for private companies

London Stock Exchange, the 201-year-old financial institutional having had a market cap of $3.8 trillion, had been exploring an option to create a special market for privately held companies where they would be allowed to trade their shares publicly on certain days, a Wall Street Journal report had revealed on Saturday citing a person familiar with the subject-matter.

Aside from that, the Wall Street Journal report also had quoted one of the sources as saying that the latest approach from LSE had been a part of a plan to list a flurry of rapidly growing technology firms considering the impact of Brexit on the bloc.

On top of that, according to the Wall Street Journal report, shares of privately held companies would be allowed to trade publicly in a specially designed stock market in a pre-set trading window once in a month or quarter citing a regulatory proposal sent by LSE to its governing body, the UK Treasury Department alongside the Financial Conduct Authority.

LSE proposes special trading for privately held companies

More importantly, the Wall Street Journal had quoted the LSE proposal sent to FCA and Treasury on December 21 as, “The new venue type would act as a stepping-stone between private and fully public markets.

It should be seen as improving on the current options available to companies seeking to raise capital without imposing regulation that will inhibit growth”. While being asked about the Wall Street Journal report, acknowledging that there had been talks over a special market, a LSE spokesperson said to a press agency, “LSEG agree there is potential for additional routes to market to support the widest range of companies through their funding lifecycle including helping them transition from the private to the public markets and indeed back again”.