WSJ News Exclusive | London Stock Exchange Proposes Special Listings for Private Companies

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The London Stock Exchange is proposing the creation of a special market in which private companies periodically access public markets in dayslong trading windows

Group is seeking to blur the line between public and private companies, part of a plan to attract fast growing technology firms to list in the U.K. in the wake of Brexit.

Private company shares would trade publicly between one and five days in each trading window, once a month or quarter, or every six months. The companies wouldn’t be subject to the same degree of regulatory oversight as a fully listed company, requirements that startup company founders say are deterrents to listing shares.

Startup founders, their employees and early-stage investors would be able to raise cash by selling shares to retail and institutional investors. Large private companies would also be able to access the public market under the proposal. Tech firms such as banking app Revolut, buy now pay later giant Klarna and money transfer startup Wise could have used this route to raise money for their shareholders, the LSE said in the proposal.

 

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Sounds similar to what Seedrs and Crowdcube already do in the UK, don't see any different issues with it. I'd maybe start getting worried if I owned either of those, not really any barrier to the major exchanges offering these services.

Investing in the share market is a long term or medium term commitment- will this move not impact those who view it as so

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Anything for the people, right?

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