High Growth Segment (HGS)
The High Growth Segment (HGS) is a segment of London Stock Exchange’s Main Market. It is a transitional segment designed to attract high growth, mid-sized UK and European companies aspiring to an Official Listing on the Premium Segment over time.
There are a number of larger private UK and European businesses with ambitious growth plans that require external capital but find the barriers to accessing the IPO markets too high. HGS has been designed to make the Main Market more accessible for these businesses. It complements our existing offering of AIM and the Premium and Standard segments of the Main Market, and provides additional choice to potential issuers.
An HGS company would be larger than a typical AIM company, and would have aspirations to join the Premium segment of the Main Market. The company would have to meet the following eligibility criteria:
- Be incorporated in the EEA
- Be a commercial entity, issuing equity shares only
- Have a minimum free float of 10 per cent at IPO
- Demonstrate historic revenue CAGR of 20 per cent over 3 years
Companies must:
- Produce an EU Prospectus, approved by UK’s Financial Conduct Authority (FCA) or other EEA competent authority
- Appoint a Key Adviser, who plays a similar role to a Listing Sponsor, in relation to admission
- Demonstrate eligibility for the segment and compliance with London Stock Exchange’s Admission & Disclosure Standards
- Be approved for admission by London Stock Exchange’s Admissions Review Committee
HGS has EU Regulated Market status and is therefore subject to EU directives as applicable to Regulated Markets (including the Prospectus Directive for admissions and Transparency Directive for continuing obligations). It is a segment of London Stock Exchange’s Main Market but does not form part of the FCA’s Official List and therefore is not subject to the UK Listing Rules. Companies are required to comply with the London Stock Exchange’s High Growth Segment Rulebook located in the Admission and Disclosure Standards.