Tech boss dismisses IPO rule reform for stock market

The UK’s stock market rules do not need to be relaxed to attract more cutting-edge firms, according to one tech boss. 

The requirements a company must fulfil to list are under review by the Government, which wants to see more fast-growing firms on the London Stock Exchange. 

But David Richards, the chief executive and co-founder of cloud data specialist Wandisco, said the UK markets ‘don’t need more relaxations’ given that Britain’s rules are less restrictive than those in the US, which has a thriving tech sector. 

‘AIM already exists,’ said Richards, referring to the junior section of the London Stock Exchange, which has less restrictive listing rules. 

Instead, Richards said, the UK needs to focus on attracting ‘the right sort’ of tech companies, more specifically those that are ‘pure’ and own intellectual property rather than platforms that are used to provide physical services or goods.

His comments came as Matt Moulding, the founder of The Hut Group (THG), said he regretted floating the retail tech company last year and said the process ‘sucked from start to finish’. He added that the last year had been ‘the worst period ever’ for him.