High Growth Segment (HGS)

What is the High Growth Segment (HGS)?

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 for an Official Listing on the Premium Segment over time.

Why has London Stock Exchange introduced this new route to market?

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 such businesses. It complements our existing offering (AIM and the Premium and Standard segments of the Main Market) and provides additional choice to potential issuers.

What type of company might access the segment?

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 UK or 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
What do I need to do in order to be admitted to HGS?

Companies must:

  • Produce a Prospectus, approved by UK’s Financial Conduct Authority (FCA)
  • 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
What is HGS' regulatory status?

HGS has Regulated Market status and is therefore subject to UK laws as applicable to Regulated Markets (including the Prospectus Regulation 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, which is located in the Admission and Disclosure Standards.

Show more