In February 2013, the London Stock Exchange launched a ‘High Growth Segment’ (HGS), as a complement to its Main Market. The suggestion was that it was intended primarily as a stepping stone to the main list for high-growth companies – i.e. companies growing at a compound annual rate of 20 percent for the previous three years – and was expected to attract medium-sized businesses valued at between £300 million (€363 million; $498 million) and £600 million.
In April – more than a year later – HGS finally found its first taker: Just Eat, the online takeaway service majority-owned by UK buyout firm Vitruvian Partners and VC group Index Ventures. Just Eat sold just under a quarter of its shares at 283p when it priced on April 3, generating £360 million in proceeds and valuing the company at almost £1.5 billion – making it the biggest tech listing on the London market since before the financial crisis (and much larger than the sort of companies that had been expected to choose HGS).
Unfortunately, it hasn’t gotten off to a great start: at press time, its shares were trading at 233p, which is almost 18 percent down on its listing price.