Multiple-market structure can help attract start-ups, says London Stock Exchange chief
Bourse is considering bringing its ‘ELITE’ programme, which offers 18 months of support and mentoring to companies to prepare them for a listing, to Asia
London’s multiple-market structure enables companies ranging from innovative start-ups to mature, established firms to raise funds, according to London Stock Exchange chief executive Xavier Rolet.
He declined to comment on whether listing reforms in Hong Kong – which might include introducing additional boards with different listing requirements – could help attract more e-commerce and technology companies to list their shares there.
But he did say that in his experience it was advantageous to offer several different markets catering for a broader range of prospective companies.
“I can only share our experience that shows it would be better to have different markets to meet the different needs of companies,” he said.
London Stock Exchange agrees with the Hong Kong stock exchange principle of “one share, one vote”, which prevents companies with a dual-class structure from floating their shares, because it is fair to investors, said Rolet.
However, he said he understands why some e-commerce founders might be against it because they want to maintain control of their company despite holding a minority stake. In a dual-share listing, the stocks carry unequal voting rights.