IPSX will operate two markets. IPSX Prime (launched in 2019), admits to trading issuers owning underlying property assets. Our second market, IPSX Wholesale, subject to FCA regulatory approval, will be exclusively for professional investors trading joint venture single asset REITs.
IPSX Prime enables prospective issuers to bring to market an Initial Public Offering (IPO) of shares in companies which own underlying property assets, which are single commercial real estate assets, or multiple assets with commonality, and are, or are proposed to be, securitised for the purposes of trading on the Exchange. For example, a commercial office block that occupies a single geographic location or postal address; or comprises a single building or a group of co-located buildings.
IPSX expects that an underlying property asset should be of institutional grade (i.e. each Issuer’s asset(s) will generally have a Market Value in excess of £50m).
To be admitted to IPSX Prime, the Issuer must:
- Have a minimum initial market capitalisation of at least £25m
- Appoint an IPSX Lead Adviser to manage the IPO process
- Appoint an IPSX Approved Valuer
- Appoint an IPSX Market Maker
- Sell down a minimum 25% of the company’s shares at the point of admission
- Observe an initial leverage limit in the entity of 40%
- Prepare a prospectus for approval by the FCA including a valuation report, reference the applicable corporate governance code, and have audited accounts.
IPSX Wholesale will meet the needs of institutional real estate asset owners and investors for an onshore market trading joint venture REITs and other structures. Further details will be made available as plans are finalised and subject to regulatory approval.