The FCA has unveiled a package of measures to boost the number of listed companies and IPOs in the UK.

According to the UK Listing Review, the number of listed companies in the UK has fallen by 40% since 2008. 

The number of IPOs in the UK remains low in global terms and the FCA believes the number of IPOs next year could be boosted by the changes.

The new rules, which come into force tomorrow (3 Dec) will mean:

• The go-ahead for a targeted form of dual class share structures to encourage founder-led companies onto public markets sooner 
• Cutting the amount of shares an issuer is required to have in public hands (the so-called free float) from 25% to 10%
• Increasing the minimum market capitalisation (MMC) threshold for premium and standard listing for shares in ordinary commercial companies from £700,000 to £30m, a move to improve investor trust 

The FCA changes to the rules are designed to boost the attraction of the UK as a place to list companies, it says.

The reforms follow recommendations made in the UK Listing Review and the Kalifa Review of UK FinTech.

The FCA plans to look at wider reforms of the listing regime in the first half of 2022, including proposed next steps. 

Clare Cole, director of market oversight at the FCA, said: “These changes ensure the UK's markets maintain their reputation for dynamism, helping support the new types of companies seeking the investment that drives economic growth and by giving investors more choice with appropriate protection.

“Over the last few months, we have moved quickly to address areas where our rules could be improved to encourage innovation in primary markets. By taking this agile approach, we are pleased that new IPOs in 2022 will be able to benefit from the revised rules.”

•  PS21/22: Primary Market Effectiveness Review: Feedback and final changes to the Listing Rules