FTSE Russell proposes cutting free‑float bar to lure foreign firms

LONDON, Jan 27 (Reuters) - FTSE Russell, the index provider, is considering lowering to 10% the minimum free‑float requirement for foreign‑incorporated companies listed in London in one of its FTSE UK benchmarks.

The cut from the current level of 25% would bring foreign companies in the FTSE UK Index Series into line with UK companies, the London Stock Exchange Group LSEG.L said in a consultation published on Monday. LSEG owns FTSE Russell.

The change would have no immediate impact because no foreign-incorporated companies are excluded for failing to meet the 25% threshold.

However, LSEG said the change could have an impact over time if it encourages more companies to choose a London listing.

The London stock exchange and regulators have been seeking to get more companies to list in London, after a slowdown in the number of companies going public. Of those that list, many have chosen other exchanges in mainland Europe, the United States or Hong Kong.

LSEG also said no other FTSE Russell indices apply different minimum free-float rules to domestic and non-domestic issuers and added that aligning the requirements would make the indices more representative of the markets they track.

The UK government has urged regulators to support economic growth and competitiveness, as part of a broader mandate aimed at making London a more attractive market for listings.

Earlier this month, new rules took effect that scrap the requirement for companies to publish a prospectus for most capital raises.