PSQ Analytics, a new equity research service that will produce comprehensive, objective and rigorous research coverage of smaller companies on the London Stock Exchange's Main Market and AIM, launches today.
The service will be provided by three independent equity research firms - Argus Research, Independent International Investment Research Plc, and Pipal Research.
Research coverage is central to an informed market. Equity research increases the flow of information available about companies, making it easier for a wider range of potential investors to make their investment decisions. This can result in an increase in liquidity and have a positive impact on share price performance and can ultimately reduce a company's cost of capital.
PSQ Analytics is designed to provide smaller companies with a tool to help them attract investor interest, and is complementary to the existing research services offered by brokers and equity research providers.
Launched this morning, the PSQ Analytics website contains sample research prepared on four companies during a pilot of the service. The site is designed to be accessed by the widest range of institutional and retail investors and can be viewed free of charge.
Martin Graham, Director of Equity Markets at the London Stock Exchange, said: "Our support for the promotion of equity research is testament to our commitment to develop the structure of our markets to provide issuers with access to the support they need to develop liquidity in their securities."
"Companies who commission fee-based research are making an important statement about their business, and are demonstrating their commitment to making comprehensive information widely available to investors. By commissioning research, companies enhance their exposure to London's wide, international investment base and provide investors with additional analysis to inform their investment decisions. This is especially important in uncertain market conditions."
Further details of the PSQ Analytics scheme:
- The service will be entirely optional for smaller quoted companies on both AIM and thee Main Market.
- An initiation/annual report and interim report will be provided each year, as well as coverage of significant news events.
- The research will consist of comprehensive factual information and analysis. It will not offer investment advice in the form of recommendations or price targets.
- The research will be available to a wide audience of investors, free of charge. Institutional investors will be able to access the research through data vendors including Thomson Reuters, Bloomberg, Proquote, Capital IQ, and FactSet. Both institutional and private investors will be able to register to view reports via the new, dedicated website: www.psqanalytics.com
- In order to facilitate cross-company and cross sector comparisons by investors, the research providers have agreed to share common methodologies and produce reports that follow a uniform presentation format. Companies will be allocated to one of the three providers on a pre-determined allocation basis to enhance the impartiality of the research.
- The providers of PSQ Analytics will be responsible for the marketing and promotion of the service and for the production of the research.