Just-Eat opts to be first member of LSE's High Growth Segment

Peter Spence
Follow Peter
Source: Flickr

The prospectus of takeaway website company Just-Eat has revealed that it plans to join the London Stock Exchange's High Growth Segment.

By doing so, it won't have to sell off as much stock to be listed.

The High Growth Segment has a lower free float requirement, with a minimum threshold of 10 per cent, as opposed to a main market listing that would require 25 per cent.

Those rules were designed by the LSE and Tech City so that UK firms might be able to take on the tech-dominant US.

Presently Just-Eat is owned by employees and a number of private equity groups.

One section of Just-Eat's prospectus warns that the lower free float requirement "may affect the liquidity" of ordinary shares.

Other technology firms are expected to follow Just-Eat's lead. Propery valuation website Zoopla may be a prime candidate for the LSE's High Growth Segment if it were to float.

Last week City AM revealed that the Just-Eat's float would have no retail component. While perhaps more convenient for the banks running the sale, the decision has been critiscised by the Wealth Management Association.

Their chief executive Dr Tim May said that "it seems fundamentally wrong to deny your customers a chance to share in your company's fortunes."