UK simplifies IPO rules in bid to revive flagging London listings

Britain's financial regulator, the Financial Conduct Authority, is simplifying listing rules to make the country's stock market more attractive for companies to raise capital and reverse a prolonged slowdown in flotations.

Britain's financial ​regulator said it was simplifying listing ​rules to make ‌the country's ​stock market a more attractive place for companies to raise capital, seeking to reverse a prolonged ‌slowdown in flotations.

The Financial Conduct Authority said on Wednesday the changes would reduce the execution risk for issuers and lower compliance costs, and included removing ‌a seven-day waiting period for connected research during an IPO. London's stock ‌market has been shrinking for the last decade as companies move away for higher valuations and access to deeper capital markets elsewhere, particularly the United States.

This year has also ⁠seen ​a high number ⁠of take-private deals, with foreign takeovers of UK names Intertek, Tate & Lyle and Segro, partly ⁠a result of British stocks becoming cheaper compared to U.S. stocks since the ​start of the Iran war. The FCA said it hoped the ⁠finalisation of the new rules, on which it has been consulting since late last ⁠year, ​will help replenish the UK's depleted stock market.

The FCA said the changes would make it easier for companies looking to list in ⁠Britain. "By making the UK listing regime more efficient, we are supporting the growth ⁠and competitiveness ⁠of UK capital markets," FCA director of infrastructure and exchanges Jon Relleen said in a statement.