Just Eat Provides First Bite for LSE's High Growth Segment

The London Stock Exchange's High Growth Segment (HGS) will receive its first member company since its March 2013 launch when online takeaway firm Just Eat is admitted to trading next month. Faegre Baker Daniels corporate partner Melanie Wadsworth wrote an article for business website growthbusiness.co.uk about the HGS, what's required in order to list, and what the future may look like for the new segment.

The HGS was created for high-growth, revenue-generating companies which do not meet the requirements for the Premium segment. "Historically, such companies might have looked to AIM for a listing and it is probably no coincidence that the launch of the HGS coincided with a difficult period for the AIM market, whose currency is only now beginning to recover from the impact of the recession," Wadsworth said.

She added that companies looking to list on the HGS are required to demonstrate revenue growth of at least 20 percent over the three years prior to admission. Wadsworth explained the various reasons companies have for listing on the HGS, including that participating in a dedicated segment for larger growth businesses could raise company visibility among analysts and investors.