Compliance-focused RegTech Open Project eyes London listing on Friday

(Alliance News) - RegTech Open Project PLC on Tuesday said it expects to start trading on the ...

Alliance News 22 August, 2023 | 11:24AM
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(Alliance News) - RegTech Open Project PLC on Tuesday said it expects to start trading on the Main Market of the London Stock Exchange on Friday, through a direct listing.

The technology business focused on automation and optimisation of regulatory compliance operations said it expects a market capitalisation of GBP60 million on admission. The direct listing means that no underwriting banks involved in the admission.

RegTech is currently owned by Italy-based AvantGarde Group Spa, holding 250,000 shares directly and 59.8 million indirectly through its subsidiary RegTech Italy.

AvantGarde Group operates a system based on the integration of the "know-how" of several companies and on an internal process that generates strategic initiatives capable of accompanying companies.

Of RegTech Italy's shares, 35%, or around 21.0 million, will be admitted at a price of GBP1.00 per share.

RegTech operates the Orbit Open platform which is focused on helping customers navigate the regulatory landscape, whilst improving compliance with application regulations and standards, the company explained.

Through the initial public offering, the London-based company aims to extend the offering of the Orbit Open platform to jurisdictions such as the UK, the US, China and the Asia Pacific region. It further aims to develop the Orbit Open platform service model via more major cloud market places such as Amazon Web Services, Google Cloud and Alibaba from early 2024 to expand its business.

Further, RegTech expects to make targeted opportunistic acquisitions to increase its Orbit Open platform offering, in particular "third-party risk" and "Information & Communications Technology & Cyber Risk" modules, to provide customers with a more comprehensive operational resilience framework.

RegTech Chief Executive Officer Halliday-Pegg said: "We target the global regtech market, the data resilience, business continuity and operational risk segments of which are expected to generate an aggregate revenue of over USD40 billion by 2026."

Independent Chair Albert Ganyushin said: "With issues such as cyber security rising up board agendas, accelerated by recent examples of multinational businesses discovering their operational resilience and business continuity processes are inadequate, now is the right time for RTOP to embark on the next stage of its growth journey by Direct Listing on the Main Market of the London Stock Exchange."

The company expects to release detailed update on 2023 trading and operational progress in January.

By Tom Budszus, Alliance News reporter

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