Ofex sets £400,000 issue requirement
Article Date: Apr 12 2002Advisers planning to float companies on Ofex have been told they must seek no less than £400,000 from investors for each new issue – and £500,000 for start-ups, writes Robert Tyerman.
Market reaction to the new Ofex requirement was mixed. Brett Miller of Gledhow Investments thought it was appropriate. But Tony Drury of DWA Capital said that, in today's cautious climate, it was virtually impossible to raise £500,000 from private investors – which dominate Ofex – for new issues.
Ofex, now a separate entity from market maker JP Jenkins but owned by Jenkins family shareholders, has recently been tightening its regime. It abides by the City takeover code and is prescribed by the code of conduct and market abuse rules laid down by the Financial Services Authority.
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