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”.

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