Four firms seek stock market listing, ending two-year flight

Published on Saturday 14 November 2009 12:09

UP TO four Scottish companies, including one that could be capitalised at £500 million, are in talks with the London Stock Exchange about raising equity through a flotation.

Mark Fahy, senior manager in the LSE's UK primary markets division, revealed that he has been in discussions with the companies in the past two weeks.

Three of the firms are keen to float next year and the fourth in 2011.

"One has been looking for some time and one needs funds for rapid growth," he said. "One is a property company that sees distressed assets out there and wants to use paper (shares] to buy those businesses."

Fahy said one of the four could be valued at "half a billion" and was looking to list on the main market.

It is believed that companies in the renewables sector are keen to raise equity and are among a number now looking to alternative ways of raising capital with the debt market still difficult.

The emergence of new entrants to the stock market would counter the steady decline in Scottish listed firms.

Scotland has lost 20 quoted companies in the past two years, or almost one a month.

A spokesman for the LSE said the exchange had noted a recent article in Scotland on Sunday highlighting the issue.

It is now embarking on a series of roadshows in Scotland to promote equity as a means of raising capital. Fahy has been charged with putting together a programme of events.

Two seminars are planned in Edinburgh and Aberdeen next month and Marcus Stuttard, the head of the Alternative Investment Market (Aim), the LSE's junior exchange, will be in Scotland in the new year. Fahy, who accompanied LSE chief executive Xavier Rolet to Edinburgh, said the LSE was encouraged by a rising number of nominated advisers in Scotland.

Known as nomads, they work with companies seeking admission to Aim.