The International Stock Exchange (TISE) has revised its listing rules for trading companies, in a bid to appeal to small and medium-sized enterprises.
TISE has a long-term strategy of attracting more listings from growth companies based in the UK as well as its home markets of the Channel Islands and the Isle of Man.
Fiona Le Poidevin (pictured), CEO of The International Stock Exchange Group (TISEG), said: “Owners of SMEs require access to affordable capital in order to scale up their businesses, but this is proving increasingly difficult.
"We believe TISE can offer a much more cost-effective option for SMEs to access the capital markets and we've updated our listing rules to ensure they are sufficiently proportionate to provide an appropriate and attractive environment for these companies.”
Key changes
The key elements of the new rules for trading companies include:
• The expected market capitalisation of securities to be listed must be at least £1 million, unless otherwise agreed by the Exchange
• At least 25 per cent of shares of the class to be listed must be in the hands of the public in such proportions so that there will be an adequate market in the securities, unless otherwise agreed by the Exchange
• The company must provide three years’ audited annual accounts unless it has been operating for a shorter period and other exceptions may also apply
• Directors must provide a statement certifying that the company has sufficient working capital for at least 12 months, or otherwise how they propose to provide such capital to ensure its continued ability to trade.
Trading companies currently listed on TISE include the Exchange Group’s parent company TISEG, as well as Ravenscroft, Raven Property Group and more recently PraxisIFM.
SPAC listing rules
Changes have also been made to the listing rules for Special Purpose Acquisition Companies (SPACs) – a cash shell used to raise money for investment into a particular sector but with unspecified target assets.
The new rules for SPACs include:
• The expected market capitalisation of securities to be listed must be at least £1 million, unless otherwise agreed by the Exchange
• The amount of funds held in escrow must equate to the capital raised, less the operating costs
• A permitted timeframe of up to 36 months for the qualifying acquisition to be made
• An acquisition can proceed without further recourse if it is in line with the investment policy but where it differs, then it will require the support of the majority of shareholders and directors.