The equity issuance rules overhaul raise the prospectus waiver threshold to 75%, halves initial public offering (IPO) waiting times to three days and launch a new public offer platform (POP) to promote large crowdfunding like private issuance.
These changes closely mirror the proposed listing regime change contained in the July 2024 consultations.
Read more: FCA listing proposals “a shot in the arm for UK’s public markets”
The changes aim to boost UK public markets amidst a year where UK equity issuance has all but disappeared and a year after these changes were first proposed.
So far this year the UK represents only 0.8% of worldwide primary issuance at US$1.1 billion and just 5% of the secondary market at US$13.9 billion.
The FCA reform aims to invigorate the UK equity market. Companies already listed can now issue up to 75% of their existing share capital without needing a full prospectus rather than the previous 20% threshold. The FCA projects it will deliver annual savings of £40 million.
The waiting period between prospectus publication and IPO execution has also been reduced from six to three days to improved access and responsiveness for retail investors.
Finally, a newly launched public offer platform (POP) allows private firms to raise £5 million or more via authorised intermediaries without undergoing full prospectus obligations, effectively scaling crowdfunding mechanisms for larger offerings.
