Heart of the worlds financial markets Prepared for the Institute of Directors May 2012.
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Transcript of Heart of the worlds financial markets Prepared for the Institute of Directors May 2012.
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Heart of the world’s financial markets
Prepared for the Institute of Directors
May 2012
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London is the premier listing choice
LIQUIDITY
INVESTORS
PROFILE
Global Financial Centres index
London’s ranking
1stEdition 4
Sept 2008
Global Financial Centres index
London’s ranking
1stEdition 5
March 2009
Global Financial Centres index
London’s ranking
1stEdition 6
Sept 2009
Global Financial Centres index
London’s ranking
1stEdition 7
March 2010
Global Financial Centres index
London’s ranking
1stEdition 8
Sept 2010
Global Financial Centres index
London’s ranking
1stEdition 9
March 2011
Global Financial Centres index
London’s ranking
1stEdition 10 Sept 2011
Through our group companies we endeavour to provide the best listing and trading environment
for our issuers
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…sitting in a time zone which can trade with the world
London is a global hub for international investors
USD million
Assets managed in the UK and globally out of London – ten largest investment firms
Source: Investment Management Association: Asset Management in the UK
2009-2011.
All major global investors sit in London are able to access London Stock Exchange traded stocks
0 -11 -10 -9 -8 -7 -6 -5 -4 -3 -2 -1 0 +1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11
London trading hours
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London Stock Exchange offers a diverse range of markets
Main MarketEU Regulated markets
Exchange Regulated markets
AIM
Professional
Securities Market
Specialist Fund Market
Securities admitted to official list
(maintained by UKLA)
Securities not admitted to official
list(maintained by UKLA)
The choice of market will depend on a number of factors including:
• Stage in a company’s development
• Complexity of the offer and securities issued
• Target investors
• Company’s size • Company's strategy and objectives
From Small to Large:
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AIM: The World’s Most Successful Growth Market
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NB: Number of companies colour coded per grouping rather than country
60 +
40-59
20-39
0-19
Number of companies
Source: London Stock Exchange statistics – February 2012
AIM companies have operations across the globe from 95 countries
655042
59
40
24
3629
26
15
Other offshore: 10Isle of Man & Channel Islands: 18
23
9 111
UK: 685
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AIM covers an unparalleled range of sectors
Source: London Stock Exchange trade statistics – February 2012
INDUSTRY REPRESENTATION BY NUMBER OF COMPANIES
Oil & Gas; 129Basic Materials; 170
Industrials; 212
Consumer Goods; 57
Health Care; 64
Consumer Services; 109
Telecoms; 13 Utilities; 11 Financials; 249
Technology; 108
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AIM provides access to the world’s leading institutional investors
The investor base for AIM companies is institutional and retail.
Source: GCI Institutional Investors in AIM survey 2011
InvestorNumber of
investmentsValue of investments
(EUR million)
Blackrock 141 2,188Fidelity 86 1,025Invesco 55 863Lloyds Banking Group 56 800Prudential 43 774Henderson Global Investors 167 732Capital Group Companies 35 694Challice Limited 1 602Citvic Nominees 5 581JPMorgan Chase 64 523
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99
0.10.8 0.7 0.6 0.9
3.1
1.1 1.02.1
4.7
8.9
15.7
16.2
4.35.5
6.8
4.3
19951996199719981999200020012002200320042005200620072008200920102011
Further money raised
New money raised
(in £ billions)
Source: London Stock Exchange statistics – February 2012
AIM enables companies to raise capital throughout their life on market
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AIM’s entry criteria are tailored for growing companies
• Nominated adviser (Nomad) required at all times
• No minimum size requirement
• No minimum financial history required
• No formal requirement for shares to be held in public hands
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Continuing eligibility requirements facilitate growth and investor confidence
• Must retain a Nomad at all times
• Must disclose all price sensitive information in a timely manner
• Half yearly and annual report and accounts required
• UK Corporate Governance standards adopted by companies as best practice
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Pre IPO Considerations
Timing: 6 – 12 months
Deal Team: External advisers and internal team
Tasks: Board structure & corporate governance
Financial due diligence
Legal due diligence
Produce Admission Document / Prospectus
Investor roadshow
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Post IPO Considerations
Investor Relations: Investors, analysts and media
Reporting: Company results
Price-sensitive information
Regulation: Company and Director obligations
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Further Information
Mark RussonBusiness Development ManagerUK Primary Markets
+44 (0)7766 421 679
www.londonstockexchange.com