LGIM to call for ‘more protections’ for minority investors
One of the UK’s largest investors is set to call for more protections for minority investors in a submission to the Financial Conduct Authority (FCA) over reforms to the UK’s listings regime.
Legal & General Investment Management (LGIM) will call for a range of measures, including making investment banks which run IPOs for companies receive some of their payment in shares, Sky News reported.
In addition, the investment body reportedly will also call for dual-class shares to excluded from premium indices for three years after listing.
To improve transparency, it also wants banks to publish sponsorship letters providing reassurance as to the health of firms about to list, and for the appointment of chairs to take place at least six months before a firm goes public.
The wide-ranging submission is being pulled together by Sacha Sadan, the LGIM’s director of investment stewardship.
Sadan is one of the City’s best known corporate governance figures. Speaking to Sky, he said: “LGIM supports new innovative companies and wants to constructively improve the IPO market to be truly enduring.
“IPO success should not be measured on day one, but over the long term.”
The FCA’s consultation on reforming the UK’s listing regime comes amid a splurge of activity on London’s markets.
Already this year TrustPilot, Dr Martens, and Moonpig have all listed, while Deliveroo today unveiled the price range for what could be one of the UK’s biggest debuts in years.
The firm has set a price range for the offer at £3.90 to £4.60 per share, meaning the firm could raise up to £8.8bn when it goes public.
The FCA consultation comes after former EU commissioner for financial services Lord Hill published a Treasury-commissioned review of the UK listing regime.
City PM has contacted LGIM for comment.