IPSX Prime will be a public market dedicated to the IPOs of Exchange Traded Properties (ETP) which may comprise of single or multiple assets. ETPs will be securitised through the issuance of equity shares.
IPSX Prime enables asset owners to bring to market an Initial Public Offering (IPO) of companies which own single or multiple real estate assets – for instance a commercial office building.
To be admitted to IPSX Prime, the Issuer must appoint an IPSX Lead Adviser and sell down a minimum 25% of the company’s shares at the point of admission. The Issuer must appoint an IPSX Approved Valuer, limit the leverage in the entity to 40%, issue prepare and submit a prospectus and other information to the UK Listing Authority (UKLA), have audited accounts and meet the IPSX Admission and Disclosure Standards.
- Appoint IPSX lead advisers to support and manage the IPO process
- Minimum market capitalisation of at least £25m
- Appoint an IPSX Lead Adviser to manage the IPO process
- Appoint an IPSX Approved Valuer
- Have audited accounts
- Sell down a minimum 25% of the company’s shares at the point of admission
- Leverage limit in the entity of 40%
- Issue an approved prospectus for approval by the UKLA including a valuation report
- Application of corporate governance code
- Meet the IPSX Admission and Disclosure Standards
The ETP will be a UK corporate who has entered or is intending to enter the REIT regime, or an offshore company (for example residing in Jersey or Guernsey)
- The Board of the ETP issuer comprises the Executive Directors responsible for holding, managing and running the CRE asset
- The ETP issuer is a property company with a general commercial or industrial purpose i.e. developing, managing and leasing the CRE asset in the best interests of shareholders
- The listing process will be like a traditional equity market
- Listing under the Prospectus Directive (UKLA) with regulated market admission to trading requirements by IPSX. UKLA turnaround time for a prospectus approval is anticipated to be two to four weeks