October 16, 2017
Partner Sharon Geraghty has spoken with Listed Magazine on the new measures taken by FTSE Russell and S&P Dow Jones regarding companies with multi class share structure.
The October 5 article speaks on the introduction of measures that restrict access to new listings on the indexes that carry multiple share classes.
Speaking on how listees will respond to the new restrictions, Sharon tell Listed that tapping into the funds available in the indices will be a motivator for companies to abide by the new rules.
“Access to key indices is important,” Sharon said.
“Being eligible for those indices is a positive factor in generating investor demand. Now, prospective issuers and underwriters who sell their shares will know they don’t have access to an index and that will impact pricing for their shares at some level.”
But Sharon also said that regardless, these multiple class share structures won’t disappear entirely.
“I don’t think [companies] will stop using these structures and I don’t think underwriters will stop underwriting these types of offerings,” she told Listed.
Sharon has authored a number of pieces, including this one on shareholder activism.