EU to announce new move to help businesses go public sooner
"Shake-up" of stock market legislation will mean companies only have to issue an investor prospectus if they are looking to raise more than £352,000
The European Commission is to announce new rules which it hopes will encourage early-stage businesses to float on the public market such as AIM, instead of using bank finance or venture capital investment.
This “shake-up” of stock market legislation will mean that European companies only have to issue a prospectus; the legal document produced for investors, if they aim to raise more than £352,000 – markedly higher than the previous £70,000 ruling.
It will also make prospectuses shorter (therefore less costly for small businesses to compile) and will introduce a simplified document for listed firms looking to raise more money.
EU commissioner, Lord Jonathan Hill, said the change-up would “free up the system”.