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IGNITE your…. London Stock Exchange Presenter – Lucy Tarleton, London Stock Exchange Director, responsible for London & the South of England, will be presenting on “Aim - where ideas take off” Aim is regarded by advisers, investors and companies as the most successful growth market in the world, having helped thousands of ambitious companies raise the capital they need to fund their growth and development. Lucy will provide an analysis of the benefits of flotation and the challenges companies will face on their journey to IPO, highlighting AIM's role in funding growth companies and its increasing importance for access to capital. In her role, Lucy provides support and guidance to private companies who are considering floating as well as managing the London Stock Exchange’s relationship with over 850 Main Market and AIM quoted companies and the relationship with the corporate advisory community in the region.
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Listing in the centre of global finance
Prepared for SETSquared
1 May 2014
1) Equity Markets Overview
3
Money
raised (IPO)
(GBPm)
Q1
2013
Q1
2014
%
change
Main Market 1,792 4,100 129%
AIM 34 1,283 3,674%
Total 1,826 5,383 195%
Number of
IPOs
Q1
2013
Q1
2014
%
change
Main Market 8 14 75%
AIM 6 17 183%
Total 14 31 121%
Source: Bloomberg and Dealogic, as of 31 March 2014
Primary markets in London remain very active
0
10
20
30
40
50
60
0
2
4
6
8
10
12
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
VF
TS
E
Dea
l va
lue
in
GB
Pb
n
New issues VFTSE
4
PE Backed IPO Market Returned in 2013…
Date Company name Sector Private Equity
Sponsor
Mkt cap
at IPO
£m
IPO
size
£m
Secondary
portion of
Offering (%)
Price Chg
since IPO
(%)
25-Mar-13 Countrywide plc Real Estate Alchemy, Oaktree, Apollo 706 212 2 75.9
27-Mar-13 esure Group plc Insurance Electra Partners, Penta
Capital Partners 1,144 658 92 -12.3
02-Apr-13 HellermannTyton Group plc Electronic & Electrical
Equipment Doughty Hanson 397 215 86 61.5
12-Jun-13 Partnership Assurance
Group plc Insurance Cinven 1,473 534 74 -66.1
26-Jun-13 Al Noor Hospitals Group Healthcare Ithmar Capital 727 222 56 80.2
31-Jul-13 Conviviality Retail plc Retail ECI Partners 64 61 100 65.0
20-Sep-13 Foxtons Group plc Real Estate BC Partners 653 431 86 43.5
08-Oct-13 Arrow Global plc Financials RBS Asset Management 359 209 74 8.5
22-Oct-13 Stock Spirits Group Beverages Oaktree 475 261 80 24.3
8-Nov-13 Merlin Entertainment Leisure & Recreation Blackstone Group, CVC
Partners 3,208 961 80 17.2
12-Nov-13 Just Retirement Group plc Insurance Permira 1,125 343 13 -28.0
15-Nov-13 Infinis Energy plc Energy Terra Firma Capital
Partners 782 235 100 -15.5
20-Nov-13 Bonmarche Holdings Retail Sun Capital Partners 60 40 100 48.9
28-Nov-13 Eclectic Bars Dining & Leisure Avanti Capital 21 15 30 5.6
The Return of Private Equity issuance
• 2013 saw a vibrant market for private equity-backed IPOs on the London market with 14 businesses successfully floating and raising a
combined £4.4bn ($7.0bn)
• Most of these have performed well in the secondary market, which has helped reinforce investor appetite for sponsor backed issuance
and bodes well for other deals in the pipeline
Source: Bloomberg, Dealogic, April 2014
Source: Bloomberg, Dealogic, April 2014
* Other Financial Sponsors include: SM Trust, Redpoint Ventures and Greylock Partners
5
…And Has Continued to Drive Volumes in 2014
Date Company
name Sector
Private Equity
Sponsor(s)
Mkt cap at
IPO £m
IPO size
£m
Secondary
portion of
Offering
(%)
Price Chg
since IPO
(%)
10-Feb-14 Manx Telecom Telecom HgCapital 163 159 87 14.5
25-Feb-14 McColl's Retail
Group Retail
Coller Capital, Caird
Capital 333 138 63 -13.6
27-Feb-14 DX Group Logistics Arle Capital Partners 334 209 8 25.3
14-Mar-14 Gulf Marine
Services Transportation Gulf Capital 473 179 60 11.9
28-Feb-14 Lenta Retail TPG, VTB 2,590 587 100 -6.0
17-Mar-14 Poundland Retail Warbug Pincus 1,252 391 100 17.7
17-Mar-14 Pets at Home Retail KKR 2,044 511 5 -9.0
28-Mar-14 Brit Insurance Insurance Apollo, CVC 1,689 290 91 -11.4
3-April-14 Just Eat Consumer Index Ventures
Vitruvian Partners* 1,468 361 72 -9.5
11-Apr-14 Cambian Group Healthcare GI Partners 392 197 90 -2.9
11-Apr-14 Exova Group Professional
Services Clayton Dubilier & Rice 556 223 50 0.6
11-Apr-14 Polypipe Chemicals Caird Capital 496 297 100 8.5
The London market continues to feature financial sponsored deals in 2014
• 2014 continues to see a favourable market for private equity-backed UK IPOs on the
London market with 12 businesses successfully floating in the first quarter and
raising a combined £1.7bn ($2.7bn)
• Upcoming floats have been widely covered by the press, including, Saga, Travelex,
Card Factory, and many others
2014YTD Money raised at IPO by
deal type
Financial sponsor-backed
IPO 50%
Non financial sponsor-backed
IPO 50%
2) AIM
Start - Up Early Stage Expansion Consolidation &
further capital raising
Diversification of investors, M&A
and International Expansion
EU Regulated
Concept &
seed stage
Fu
nd
ing
re
qu
ire
me
nt
£500k
£1m
£100k
£50k
£150m
£1bn
Not public Exchange regulated Market
designation
Strategic consideration
Official List & EU Regulated
A choice of routes to market, ultimately
dependent on company's stage of development,
size & strategy
7
0
2
4
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12
14
16
18
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Further New
123 145
107 75
102
277
177 160 162
355
519
462
284
114
36
102 90 71
99
26
0
100
200
300
400
500
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
UK
Int'l
8 13
39
133 136
173
214
150
122
80
1bn+500-1bn250-500m100-250m50-100m25-50m10-25m5-10m2-5m0-2m
Profile of AIM companies Admissions to AIM – 1995 to March 2014
Fundraisings on AIM – 1995 to March 2014 Industries represented – by number of companies
1,094 companies,
aggregate value of
£78bn
A snapshot of AIM
Over 3,450
companies raising
£38bn at admission
£86bn in total
(£48bn through
further issues)
Source: LSE statistics, March 2014
26 companies either suspended or undetermined value
Oil & Gas, 132
Basic Materials, 179
Industrials, 191
Consumer Goods, 63 Health Care, 68
Consumer Services, 110
Telecommunications, 15
Utilities, 15
Financials, 210
Technology, 111
*ICB industry classification
8
9
Technology companies on our markets
Market Cap profile of technology companies on our markets
ICB Sector AIM Main Market
Electronic & Electrical Equipment 30 21
Fixed Line Telecommunications 6 18
Mobile Telecommunications 8 8
Software & Computer Services 91 25
Technology Hardware & Equipment 18 19
Other technologies* 20 6
Total Number of Companies 173 97
Total Market Cap (£bn) 15.7 625.3
• There are currently 270 tech** companies listed on our
markets worth around £641bn
• Recent IPOs have been from innovative, fast growing
companies including: Rosslyn Data Technologies (£10m),
boohoo.com (£300m), Manx Telecom (£156m), Tungsten
Corp (£160m), Plus500 (£50m), CentralNic (£7m),
Cambridge Cognition Holdings (£11m), Keywords (£28m),
WANdisco (£15m), blur Group (£4m).
• High Growth Segment: an additional route to LSE’s Main
Market providing greater choice to growth businesses. On
the 3rd April 2014, Just Eat became the first company to
list on the HGS
Source: London Stock Exchange statistics, April 2014
Figures in brackets refer to money raised at IPO
* ’Other technologies’ includes the following additional ICB sectors: Chemicals, Equity Investment Instruments, Financial Services, General Retailers, Media, Support Services,
Leisure Goods, Industrial Engineering, Household Goods & Home Construction, Travel & Leisure.
**not including Healthcare Equipment & Services or Pharmaceuticals & Biotechnology ICB sectors
£0-5m £5-10m £10-50m £50-100m £100-500m £500m-£1bn £1-5bn £5-10bn £10bn+
AIM 29 19 61 27 30 5 2 0 0
Main Market 3 1 4 7 22 15 31 4 10
0
10
20
30
40
50
60
70
No
. o
f co
mp
an
ies
The benefits of the AIM network
Access to
capital
Wide support network
Profile
Diverse & deep
pool of capital
Strong support
from institutions
Nominated advisers
Accountants
Lawyers
Banks/Brokers
Analysts
Financial PR / IR
Media
Visibility
Bargaining power with
customers & suppliers
Marketability of stock
Global peer group
10
Liquidity and investors
Number of companies in each index and market cap group
Market cap Range FTSE AIM All
Share FTSE All Small
£0-25m 428 38
£25-100m 243 86
£100-500m 131 222
£500m+ 12 17
Total 814 363
AIM companies have comparable levels of daily liquidity to their Main Market peers
Source: Data from Bloomberg and FactSet (6 month average daily value traded). Liquidity Analysis shows median within each market cap range.
• AIM companies are supported by a deep
pool of institutional capital, as well as an
active retail investor base
• There is a dedicated network of market
professionals (brokers, research analysts,
advisors)
• The FTSE AIM 100 (which includes the 100
largest UK AIM companies) was the best
performing UK index in 2013
*NB: The FTSE All-Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledging indices
90
95
100
105
110
115
120
125
130
Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14
FTSE 100 FTSE All Share FTSE AIM 100 FTSE AIM All Share
0.00%
0.10%
0.20%
0.30%
0.40%
0.50%
0.60%
£0-25m £25-100m £100-500m £500m+Avg d
aily
valu
e t
raded a
s %
of m
ark
et cap
FTSE AIM All Share FTSE All Small
11
Understanding the AIM admission process &
associated costs
Informal discussions
& fact finding
Appoint a nominated
adviser
Review of corporate structure,
governance & Board
Due diligence & drafting of admission document
Investor discussions
& placing agreements
Placing finalised & completion
meeting
IPO
THE START OF THE
JOURNEY
AIM pre-admission
announcement
(10 days prior to
admission)
Costs of IPO
Advisory & due diligence These include nomad, reporting accountants, lawyers and other due diligence costs. They are mainly dependent on the
complexity of the business & sector, but can be significantly higher for the Main Market due to legal costs of producing a
Prospectus approved by the UKLA
Exchange fees Incremental based on company’s market value
Broker commission Actual % depends on the quantum & can be affected by sector and complexity of deal
Ongoing compliance – can vary with corporate activity
Nomad/Corporate adviser Similar for AIM & Main Market companies – as Main Market companies usually retain a corporate adviser
Auditors • Similar for comparable companies on AIM & the Main Market
• Can vary dependent on complexity of the business
Internal Costs Include corporate governance costs including non-executive directors as well as increased public relations & investor relations
efforts
Other Include exchange fees, registrars, website, AGMs etc
Fees may vary significantly depending on the size, complexity and sector of a company. 12
The AIM framework: understanding the role of the
nominated adviser
Who are
nomads?
• An investment bank, a corporate finance or accountancy firm approved to act in the capacity of a nomad by
London Stock Exchange
• It is important a company choses a nomad firm with relevant sector experience and understands the
business. It is likely that the company will have a long and close relationship with their nomad
• A company can change its nomad firm as circumstances arise but must retain a nomad throughout its time
on market
What does the
nomad do?
• Undertakes due diligence to determine whether the company and directors are suitable for AIM
• Prepares the company for life on a public market and provides support in appointing team of advisers
• Co-ordinates the preparation of the admission document which details the company’s investment
proposition
• Confirms to London Stock Exchange that the company is appropriate for AIM
• Acts as the primary regulator throughout a company’s time on AIM by ensuring the company continues to
understand its obligations under the AIM Rules
• Gives corporate finance advice in relation to transactions whilst on AIM
Why is the
nomad role
important?
• To support and guide companies to achieve their growth potential
• To help companies provide an assessment of their business and prospects for investors
• A regulatory role to ensure a company meets its on-going obligations
• To safeguard the integrity of the market. Strict criteria in place for becoming an approved nomad ensures
companies have access to the high-quality advice they deserve
AIM companies are supported by a large and highly experienced community of advisers - nomads, brokers to accountants, lawyers,
public relations and investor relations firms. The role of the nomad is the most critical as the AIM rules require every company to
retain a nomad at all times.
13
The AIM framework: admission & ongoing
responsibilities
Key eligibility requirements
Eligibility criteria
• Appointment of nominated adviser
• No minimum track record requirement or free float criteria, but company must demonstrate
appropriateness to join a public market
Admission documents
• Pre-admission announcement at least 10 business days prior to admission
• AIM admission document
• Nomad declaration of appropriateness
Rulebooks • AIM Rules for Companies and Nominated Advisers
Corporate governance • Adoption of corporate governance measures as appropriate for the business
• UK Corporate Governance Code / QCA Corporate Governance Code as best practice
Continuing obligations
Adviser • To retain a nominated adviser at all times, failure to do so may result in suspension in the
company’s shares
Periodic reporting • Audited Annual Report
• Half yearly financial report
Disclosure requirements
• Price sensitive information to be made public without delay
• Significant shareholder notification
• Directors’ dealings notification
• Company website with up-to-date regulatory information
Corporate transactions
• Class tests to assess transactions
• Notification of substantial transactions, related party transactions
• Shareholder approval for reverse takeovers, fundamental disposals & cancellation
14
Prepare ahead
Early Look
Investor
Engagement
In an increasingly crowded primary market calendar, early preparation is critical
Very hard to accelerate an IPO process, so early preparation enhances ultimate timing flexibility
As activity increases, pressures / bottlenecks are likely to increase within advisory community – choosing the right advisers therefore
increasingly important
Buyside fund managers have been vocal in the past about wanting to meet management teams ahead of an IPO
This practice of “early look” engagement with a number of the key investors has been very valuable:
Feedback for the Company and owners at an early stage on the business model, the management team and likely valuation
parameters
Investors get an opportunity to build a rapport with management at this early stage, enhancing their likely participation at the IPO
Information at this stage can be carefully managed, such that management teams are not held to specific forecasts later at the time of the
IPO
Demand
Patterns have
Shifted
For UK IPOs in 2013, participation from US investors (who are significantly underweight Europe still) has typically totalled 30-50% of gross
demand
Appetite from retail both directly (spill-over from Royal Mail effect) and through intermediaries has been strong and merits real
consideration
Important to consider complementary distribution platforms in IPO syndicates to tap all of these pockets
Appetite Broad
Based
We have seen transactions this year across all sectors – quality businesses will be well received
Biotech has seen a notable uptick in issuance. Technology, pre-revenue, high growth and more traditional cash generating businesses
have also found favour
Secondary components at IPO have been accepted,
Many investors believe they will have to get more selective as 2014 pipeline accelerates, but plenty of demand for high quality
propositions
Observation Comment
Lessons Learned from Recent IPOs
15
3) Selected IPO Case Studies
Company Details
Company Horizon Discovery
Group
Market AIM
Sector Pharmaceuticals and
Biotechnology
Trading system SETSqx
Country of
incorporation UK
Transaction Details
Admission date 27 Mar 2014
Money raised at
admission £68.6m
Market cap at
admission £120.5m
Current market cap £118.8m
NOMAD and Broker Panmure
Gordon
Company profile
Horizon is a revenue-generating life science
company supplying research tools to
organisations engaged in genomics research
and the development of personalised
medicines.
The Group, which is Cambridge based, has
a diverse and international customer base
approaching 800 organisations, including
major pharmaceutical, biotechnology and
diagnostic companies as well as leading
academic research centres totalling 353
unique customers in 2013.
Horizon’s main country of operation is the
UK, with operations in the US and selling
internationally.
Listing story
The offering comprised £40m of primary
capital and £28.6m secondary issuance at
180p per share
Horizon’s aim is to become a global market-
leader in the provision of Life Science
research tools that enable the understanding
of the genetic basis of disease and the
development of personalised medicines that
deliver better outcomes for patients.
Proceeds from the IPO will be used to
enhance the global profile of Horizon
Discovery, expand its sales and distribution
channels, boost its product lines and increase
its geographic footprint and opportunities in
leveraged R&D.
Case Study:
Horizon Discovery
Source: FactSet, April 2014
17
Top 3 Institutional Investors Value held £m
Legal & General Investment Management 9.5
Hargreave Hale 5.3
Henderson Global Investors 5.3
Key statistics
Current market cap (£m) 118.8
Shares out (m) 66.93
Current free float 65.82%
Institutional ownership 23.10%
Source: Bloomberg, FactSet and LSE Trading data, April 2014
*prices rebased to 100 as of 1st June 2012
Company profile
WANdisco is a leading provider of global
collaboration software to the software
development industry. The company is
headquartered in Sheffield, UK, with significant
operations in Silicon Valley, California.
WANdisco’s differentiated patent-pending
technology, the Distributed Coordinated Engine,
provides a cost-effective method to maintain
continued synchronisation between
geographically distributed servers. This
technology in conjunction with “Subversion”, an
open source version control system, allows
software developers at globally distributed sites
to access the same program data at all times.
Revenue increased by 30%, from £1.9m in
2010 to £2.4m in 2011.
Listing story
WANdisco’s IPO was almost four times
oversubscribed.
WANdisco plc planned to use the net
proceeds of the placing on opening an office
in China, further product development,
reducing current level of provisions and other
payables and potentially on complementary
technology acquisitions.
In September 2013, WANdisco returned to
the market with a £19m follow-on offer to
fund further research and development. At
the time of this further capital raise,
WANdisco’s share price had increased
483% since IPO.
Leading Investors Value held £m
Cazenove Capital Management Ltd. 20.1
Legal & General Investment Management 10.0
BlackRock Investment Management (UK) 9.1
Octopus Investments Ltd. 4.9
Standard Life Investments Ltd. 4.3
Hargreave Hale Ltd. 3.8
Old Mutual Global Investors (UK) Ltd. 3.4
Artemis Investment Management LLP 3.3
M&G Investment Management Ltd. 3.0
Ecclesiastical Investment Management Ltd. 2.6
Company Details
Company WANdisco plc
Market AIM
Sector Software &
Computer Services
Trading system SETSqx
Ticker WAND
Country of
incorporation UK
Transaction Details
Admission date: 1 June 2012
Money raised at
admission £15m
Market cap at
admission £35m
Current Market cap £222m
Nominated Adviser
and Broker
Panmure
Gordon
Case Study:
WANdisco
18
0
100
200
300
400
500
600
700
800
900
Jun-2012 Nov-2012 Apr-2013 Sep-2013 Feb-2014
WANdisco vs FTSE AIM All Share*
WANdisco FTSE AIM All Share
Company Details
Company Venture Life Group
Market AIM
Sector Food Producers
Trading System SETSqx
Country of
incorporation UK
Transaction Details
Admission date 28 Mar 2014
Money raised at
admission £5.4m
Current market cap £25.6m
NOMAD Charles Stanley
Securities
Company profile
Venture Life is an international consumer
healthcare company based in the UK, with
topical development and manufacturing,
focused on developing products for the
ageing population.
The Group's product range includes food
supplements for lowering cholesterol and
improving brain function, dermo-cosmetics
and cosmetics for addressing the signs of
aesthetic ageing as well as medical devices
for improving minor aches and pains and dry
eyes.
Venture Life Group was founded by Sharon
Collins and Jeremy Randall and is
headquartered in the UK
Listing story
The fundraising and admission to AIM
allowed Venture Life to complete the
acquisition of the Italian company,
Biokosmes.
Venture Life is aiming to take advantage of
the increasing demand for healthcare
products and food supplements for the
ageing population.
The Group will seek to generate growth
through expanding distribution and sales of
its current on-market products, the
development and commercialisation of new
products and formulations addressing unmet
needs and penetration into the Chinese and
Far East markets.
Case Study:
Venture Life
Source: FactSet, March 2014
19
Top Institutional Investors Value held £m
Aviva Investors Global Services 2.56
Quilter Cheviot 1.96
Key statistics
Current market cap (£m) 25.6
Shares out (m) 24.26
Current free float 52.40%
Institutional ownership 17.64%
Case Study:
Blur Group plc
Company profile
blur Group owns and operates the online
Global Services Exchange at blurgroup.com
where businesses buy, sell and pay for
business services, including marketing,
design, advertising and technology
Making use of cloud technologies and expert
sourcing techniques, it started building expert
crowds in 2007 and formally launched in 2010
In 2012 it received its 1,000th brief and now
has over 20,000 experts from over 130
countries
Listing story
On 31st May 2013, blur Group raised an
additional £7.2m through an oversubscribed
further offering
Since IPO, the company’s market
capitalization increase almost 6 times its offer
value.
In 2013, blur Group won Shares Magazine
Best LSE AIM Company Achievement
Although the group earns almost half of its
revenues in dollars, Philip Letts, chief
executive and founder, said “Blur was not
tempted by a US listing and only had eyes for
AIM. Our ambition has always been to build a
UK global technology success story and the
initial public offering is a key part in helping
us to achieve that goal.”
Source: FactSet, February 2014 20
Company Details
Company blur Group
Market AIM
Sector Software &
Computer Services
Ticker BLUR
Country of
incorporation UK
Transaction Details
First Trading Day 5 Oct 2012
Money raised at
admission £4.1m
Market cap at admission £20.4m
Current market cap £136.3m
NOMAD/Broker Singer Capital
Further money raised £7.2m
Investor Name Value held in
GBP millions
Majedie Asset Management Ltd. 12.3
Investec Asset Management Ltd. 11.6
Quilter Cheviot Ltd. 3.9
Octopus Investments Ltd. 3.8
Kames Capital Plc 3.7
Barclays Bank Plc (Private Banking) 2.6
J.O. Hambro Capital Management Ltd. 1.6
Allianz Global Investors Europe GmbH 1.5
TD Direct Investing (Europe) Ltd. 1.3
Ignis Investment Services Ltd. 1.2
0
100
200
300
400
500
600
700
800
900
1000
Oct-2012 Jan-2013 Apr-2013 Jul-2013 Oct-2013 Jan-2014
blur vs FTSE AIM All Share
blur Group FTSE AIM All Share
4) ELITE Programme Information
ELITE
A platform to facilitate long-term structured engagement between
the UK’s most ambitious growing businesses, industry experts and
the corporate advisory and investor community, helping them prepare
and structure for external investment and the next stage of growth.
Delivered in partnership with Imperial College Business School, ELITE
will enhance the growth prospects of member companies through a unique
three-part package of education, business support, coaching and access
to investors and business leaders.
Get Ready A comprehensive program for
founders and managers, delivered
with Imperial College Business
School and external experts, to
stimulate organisational review
and change.
Get Fit Reflection on company-specific
issues and planning for change
with the support of a dedicated
external advisory team.
Get Value Capitalise on the benefits of
the first two phases to access
new business opportunities
and funding options.
22
The ELITE community
Advisers Investors
Imperial College
Business School
Entrepreneurs Industry experts
Influencers London Stock
Exchange
Public companies
ELITE company
23
Benefits of being a member
— Bespoke access to a network of the UK’s leading advisers, investors, experts, entrepreneurs
and public companies
— Earlier engagement with the investor community helping to access capital from a range of
sources as and when appropriate for your business
— Become part of a vibrant ecosystem that supports and promotes innovation, entrepreneurialism
and growth
— Develop the expertise to help make informed business and funding decisions for your company
— A platform to enhance your business profile with stakeholders, supported by an extensive media
campaign and web portal
— Opportunity to interact, share experiences and learn from other companies with similar growth
objectives and aspirations.
24
Appendix
Access to capital
Liquidity
An exit route for earlier stage investors
Ability to incentivise key employees’ commitment
Significantly enhance profile & visibility, particularly with customers & suppliers
Currency to fund business acquisitions & expand into new markets
Greater operational and governance discipline
Why join the public equity market? What our companies tell us…
26
Indicative AIM IPO transaction timeline
Week
1 2 3 4 5 6 7 8 9 10 11 12 13 14
Test marketing
Negotiation of agreements for the
engagement of Nomad & broker, reporting
accountant and registrars
Review corporate structure with key
advisers
Financial due diligence & reports:
long form report; financial information;
working capital
Drafting of AIM admission document
Senior executive employment
arrangements and terms of appointment of
non-executive directors
Negotiation of placing agreement
Legal due diligence report produced and
verified
Pathfinder completion meeting
Marketing
Placing list finalised
Placing proof prepared & Placing proceeds
received by broker
AIM pre-admission announcement
Completion meeting
Admission to AIM and dealings commence
Proceeds of the placing paid to the
company
27
LSE Equity Primary Markets Team
Global Head of Primary Markets Alastair Walmsley +44 (0)20 7797 1597 [email protected]
Relationship Management
Region Relationship Manager Telephone Email
UK Marcus Stuttard
Tom Attenborough
Lucy Tarleton
Mark Fahy
Chris Mayo
+ 44 20 7797 3364
+ 44 20 7797 3747
+ 44 20 7797 4672
+ 44 20 7797 6396
+ 44 20 7797 3134
Russia, CIS, Asia – Pacific Jon Edwards (London)
Ayuna Nechaeva (London)
Maksim Kondratjuks
Julia Wang (Beijing)
Yi Xie (HK)
+44 20 7797 1599
+44 20 7797 4386
+44 20 7797 4305
+86 10 5833 2201
+852 3555 6395
India, Middle East, Africa Ibukun Adebayo +44 20 7797 1085 [email protected]
Americas Alexander Lehmann (New York) +1 917 863 9100 [email protected]
Continental Europe Luca Peyrano (Milan)
Axel Kalinowski
+39 0 272 426291
+44 20 7797 4108
Product management and development
Product Manager Telephone Email
Main Market, AIM, PSM, SFM, ELITE
and ATT Only
Joanne Dutton
Darko Hajdukovic
Umerah Akram
Marcello Sathya Cassanelli
Luca Broglio
Emma Titmus
David Smith
+44 20 7797 3622
+44 20 7797 3306
+44 20 7797 4707
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© May 2014
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