Corporate weekly highlights—12 July 2018

Corporate weekly highlights—12 July 2018

This week’s edition of Corporate highlights includes analysis of new provisions relating to the availability of information during the UK IPO process, the amendment of the Nomad Rules by the LSE, and analysis of the Companies (Miscellaneous Reporting) Regulations 2018 following Parliamentary approval this week.

In this issue:

Equity capital markets

Reform of the main market IPO process goes live

Corporate analysis: This news analysis looks at the new Conduct of Business Sourcebook provisions relating to the availability of information during the UK IPO process. The analysis includes market commentary from Alexander Keepin, partner at Bryan Cave Leighton Paisner.

The Financial Conduct Authority (FCA) has been concerned that the prospectus, which is meant to be the main source of information on a company applying for listing, is made available too late in the IPO process. Instead investor education is generally informed by research produced by analysts at the investment banks which are advising on or underwriting the IPO.

The main changes set out in FCA policy statement PS 17/23 provide that:

  1. an FCA approved prospectus or registration document must be published before the publication of any research on the company;
  2. unconnected analysts must be given equal opportunity to produce research on the company; and
  3. there should be no contact between analysts and the company’s management while the analysts’ investment bank is pitching for work on the IPO in order to avoid conflicts of interest

This news analysis conisders the following issues:

  1. New IPO timetable: initial feedback suggests that the market favours the FCA’s second option for providing unconnected analysts with access to the company’s management (that they must be given identical information to that given to connected analysts and

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