NEX – ICAP Securities & Derivatives Exchange

ICAP Securities & Derivatives Exchange (NEX) provides a choice of 2 markets helping growing companies raise funding to fuel growth and achieve their ambitions regardless of size. The NEX Main Board is an EU Regulated Market for companies and other issuers looking for a cost-effective admission to trading through the UKLA’s Official List, or other European Competent Authority. The NEX Growth Market is a market for smaller growing companies.


The NEX Growth Market

The NEX Growth Market is designed specifically to help smaller and medium sized companies from across all industry sectors to raise equity funding. It is particularly attractive to younger, earlier stage, growing companies without prior knowledge or experience of Stock Markets. Its flexible regulatory system is considered to be less demanding than other Stock Markets.


Benefits of the NEX Growth Market

  • Straightforward admission process. Because there is no requirement for companies to issue a full prospectus to join NEX, the market offers companies a simple and straight forward route to joining the market.
  • With lower joining costs NEX is, for some companies, a cost effective flotation venue which compares favourably with other Stock Markets such as AIM.
  • Tax incentives. Investors in NEX companies benefit from a range of tax advantages as NEX is an unquoted market for tax purposes.
  • A potential exit route for existing Shareholders NEX provides existing shareholders in the company with a potential exit or part exit route if required, either at the time of the flotation or at a later time of their choosing.


How to join The NEX Growth Market

The admission process and on-going regulation for the market are designed to meet the needs of smaller companies, allowing those who run the companies to focus more on running their business, rather than be distracted by unnecessary red tape.

To join the NEX Growth Market, companies are required to meet the following admission criteria:

Companies must also publish an NEX Growth Market Admission Document. This is considerably less onerous and less expensive than publishing a full prospectus.

  • Demonstrate appropriate levels of corporate governance including having at least one independent non-executive director
  • Have published audited financial reports no more than nine months prior to the date of admission to trading
  • Have at least 12 months’ working capital
  • Have no restrictions on the transferability of shares
  • Issue shares which are eligible for electronic settlement


The NEX Main Board

To join the NEX Main Board, companies are required to produce a prospectus approved by the UKLA or other EU competent authority under the Prospectus Directive. The Application for Admission to the NEX Main Board is made at the same time as application to the UKLA (or other EU competent authority for listing) for admission to the Official List under a Premium or Standard Listing.

As with joining any Stock Market, it is prudent to assess the viability of a flotation on NEX before deciding to go ahead with a flotation, and certainly prior to incurring significant advisor fees. A feasibility exercise should be undertaken confidentially to provide your senior management team with an accurate, impartial assessment as to relative benefits and drawbacks for your company’s particular circumstances. Once this is completed, your management team will be able to make a firm decision about if, and when to proceed with a flotation on The NEX Growth Market.