How investors should prepare for dual class shares

With warmer weather finally upon us, there are tentative signs that London’s IPO market is starting to thaw. In the past month and a bit, we’ve had successful listings for computer maker Raspberry Pi (RPI), California-based wound-care group Aoti (AOTI) and Rosebank Industries (ROSE), a listed private equity vehicle led by two-thirds of the original Melrose Industries (MRO) gang.

Although encouraging for market renewal, three swallows do not a summer make. So while everyone waits for those long-promised rate cuts to properly fire up animal spirits, the Financial Conduct Authority (FCA) is poised to inject its own shot of adrenaline.

On 29 July, the regulator will overhaul the listings regime. This will include controversial changes to the rules governing shareholder democracy, allowing issuers with multiple share classes to list on UK exchanges more easily.