U.K. Opens Door to SPACs, Big Tech IPOs to Compete With New York

U.K. Opens Door to SPACs, Big Tech IPOs to Compete With New York

The U.K. government signaled support for looser stock-listing rules to attract tech companies and SPACs, moves aimed at helping London compete with New York and retain its position as Europe's pre-eminent financial center post-Brexit.

The proposals, expected to be formally announced Wednesday, would make it easier for company founders to list shares without giving up control and still make the stock eligible for inclusion in the London Stock Exchange 's blue-chip FTSE indexes.

Changes would also place London on more equal footing with New York to compete for the surge in special-purpose acquisition companies, or SPACs, a popular vehicle that short-circuits the traditional initial-public-offering process.

The proposals “are about closing a gap” between London and other global centers, said former U.K. politician Jonathan Hill, who spearheaded a government-ordered review of the listing rules.

London faces challenges to its status following the U.K.'s official departure from the European Union. Big chunks of London stock-trading volumes quickly moved to venues