executing a successful listing - pwc · 2015-06-03 · pwc executing a successful listing - london...
TRANSCRIPT
Executing a successful listing
London
www.pwc.com/ipocentre
An IPO Centre publication
April 2013
About this brochure
This brochure summarises the different London markets, the listing standards for each market, the process and the timeline for going public in London and an overview of the wider regulatory environment.
Content
London – an overview 2
London Stock Exchange markets 5
Listing requirements and ongoing obligations 6
Corporate governance 8
Market indices 9
Indicative IPO timeline and process 10
How PwC can help you 11
2 Executing a successful listing - London PwC
London; an overview...
Countries with companies traded on the London Stock Exchange
• NYSEEuronextopeneditsLondonplatform,complementingtheirotherEuropeanplatformsinParis,AmsterdamandBrussels.EurotunnelSAwasthefirstcompanytocompletealistingontheLondonplatforminJune2012,followedbyInfosysinFebruary2013.
60 +
40 - 59
20 - 39
1 - 19
Numberofcompanieslisted
EU RegulatedMarkets
ExchangeRegulated Markets
Securities not admitted to o�cial list
ProfessionalSecurities Market
Specialist FundMarket
AIM
Main Market
Securities admitted to o�cial list(maintained by UKLA)
High Growth Segment
L I ST E DP R E M I U M
L I ST E DS T A N D A R D
SHARES
L I ST E DS T A N D A R D
DEPOSITARY RECEIPTS
Main Market
Londonremainsoneofthemostinfluentialglobalfinancialcentres.Itowesmuchofitscontinuingappealtoitscosmopolitanstatus,theliquidityofthefinancialmarketsandtheregulatory,businessandpoliticalframeworkthatsupportsthosemarkets.
• TheLondonStockExchangeisoneoftheworld'soldestexchangesandoffersawidechoiceofroutestomarket,forUKandinternationalcompanies.Themarketsthatcompaniescanlistonareshowninthetablebelow.Whichmarketacompanyshouldconsiderwilldependupondifferentcriteriaincludingthe:
– stageofthecompany’sdevelopment;
– complexityoftheofferandsecuritiesissued;
– investorswhoarebeingtargeted;
– sizeofthecompany;
– overallstrategyandobjectives;and
– eligibility.
Source: LSE data as at 30 September 2012
PwC Executing a successful listing - London 3
*AsofDecember2012 MainMarket AIM
Numberoflistedcompanies 1,364 1,096
Totalmarketcapitalisation(GBPbn) 3,475 61
Numberofinternationalcompanies 305 225
IPO2008–2012averagemoneyraised(GBPm) 406 21
NumberofIPOs2008–2012 67 158
IPOs2008–2012proceeds(GBPbn) 27 3
Furtherissues2008–2012 621 1,805
Furtherissues2008–2012proceeds(GBPbn) 210 19
Data source: London Stock Exchange data
Spread of companies by market capitalisation as at 31 December 2012 (in GBPm)
0
50
100
150
200
250
Over 2,0001,000-2,000500-1,000250-500100-25050-10025-5010-255-102-50-2
1525
149
29
72
8594
143 147
113
28
105 1
97
81
128
98
185
140
211
104
Main Market
AIM
Data source: London Stock Exchange data
Financial
Oil and gas
Consumer goods
Industrials
Basic materials
Telecommunications
Consumer services
Healthcare
Technology
Utilities
20%
15%
13%14%
11%
10%
6%
6%3% 2%
Market capitalisation of London listed companies by industry as at 31 December 2012
Data source: London Stock Exchange data
London offers a wide choice of markets to companies of all sizes and origins
4 Executing a successful listing - London PwC
PwC Executing a successful listing - London 5
Main MarketTheMainMarketistheLSE'sflagshipmarket,regulatedbytheUKListingAuthority(UKLA).
AcompanycanlistontheMainMarketineitherthePremiumsegmentortheStandardsegment.ThesearetheFinancialServicesAuthority(FSA)listingcategoriesthathavebeendesignedtohelpclarifytheregulatorystandardsthatapplytoalistingontheMainMarket.AcompanymayalsoapplyforadmissiontotheHighGrowthSegment(HGS).
ForaPremiumlisting,thecompanymustappointasponsor,andforHGSaKeyAdviser,toprovidedeclarationstotheFSAaspartoftheIPOprocess.Diligencereportswillalsoberequiredfromareportingaccountant.
Premium listing High Growth Segment Standard listing (Shares and Depositary Receipts)
Onlyavailabletoequitysharesandclosed-andopen-endedinvestmententities.
IssuerswithapremiumlistingarerequiredtomeettheUK’sListingRuleswhicharemoreonerousthantheEUminimumrequirements.
AcompanywithapremiumlistingisexpectedtomeettheUK’shigheststandardsofregulationandcorporategovernance.
Themarketisdesignedforentrepreneurialcompanieswithhighgrowthpotentialthatneedfundstoachievetheexpansiontheydesireandarealsoreadyforapubliclisting.
ItisasteppingstonetoaPremiumListinginthefuture.
Thesegmentallowscompaniestoraisefundswithaminimum10%freefloat.
Standardlistingscoverissuanceofshares,GlobalDepositaryReceipts(GDRs),debtandsecuritisedderivativesthatarerequiredtocomplywithEUminimumrequirements.
AStandardlistingallowsissuerstoaccesstheMainMarketbymeetingEUharmonisedstandardsonly,ratherthantheadditionalUKrequirements.
AIMAIMistheLSE’smarketforsmaller,growingcompanies.Themarkethasasimplifiedregulatoryenvironmentwhichhasbeenspecificallydesignedfortheneedsofsmallandemergingcompanies.
AIMisanexchangeregulatedmarket.CompanieswishingtojoinAIMmustcomplywiththeExchange’sAIMRules.
CompaniesapplyingtoAIMmustappointandretainaNominatedAdviser(NOMAD)toguidethemthroughtheadmissionprocessandtoadvisethemsubsequentlyasapubliccompany.TheNOMADmustberegisteredwiththeExchange(SeetheLSEwebsiteforalistofapprovedNOMADS.)
TheAIMRulesforCompaniessetouttherequirementsandguidanceforcompaniesquotedorwishingtobequotedonAIM.TheadmissiondocumentrequirementsarebasedontheFSA'sProspectusRuleswithcertain(optional)exclusions.AdmissiondocumentsrelatingtoapublicofferintheUKwillneedtofollowtheFSA'sProspectusRulesandrequiretheapprovaloftheFSA.
Certaintaxincentivesareavailabletoindividualandcorporateinvestors,whichenhancetheattractivenessofinvestinginAIMcompanies.
Professional Securities Market (PSM)ThePSMisaspecialistexchangeregulatedmarketdesignedtosuitthespecificneedsofcompanieslookingtoraisecapitalthroughtheissueofspecialistdebtsecuritiesordepositaryreceipts(DRs)toprofessionalinvestors.ListingonthismarketmayavoidtheneedforfinancialinformationtobeconvertedtoIFRSoranequivalentGAAP.
Specialist Fund Market (SFM)TheSFMisanEUregulatedmarketforspecialistinvestmentfundsandspecialistpropertyfunds(includingprivateequityfunds,hedgefunds,feederfunds(bothsingleandmulti-strategy),specialistgeographicalfunds,fundswithsophisticatedstructuresorsecuritytypes),targetingsophisticatedinvestors.
London Stock Exchange markets
• Premiumlisted,StandardandHGSequitiesaretradedontheLSE’sSETStradingplatform.
• StandardlisteddepositaryreceiptsaretradedontheLSEInternationalOrderBook(IOB)platform.
6 E
xecu
ting
a su
cces
sful
list
ing
- Lo
ndon
PwC
List
ing
req
uir
emen
ts a
nd
on
goin
g ob
liga
tion
s E
ligi
bil
ity
for
ad
mis
sion
: Ma
in M
ark
et P
rem
ium
, Ma
in M
ark
et H
igh
Gro
wth
Seg
men
t a
nd
Ma
in M
ark
et S
tan
da
rd li
stin
gs a
nd
AIM
qu
ota
tion
s
Mai
n M
arke
t Pre
miu
mM
ain
Mar
ket
Hig
h G
row
th S
egm
ent
Mai
n M
arke
t Sta
ndar
dA
IM
Equ
ity
shar
esE
quit
y sh
ares
Equ
ity
shar
esG
DR
sE
quit
y sh
ares
Spon
sor
requ
irem
ent
Spon
sorisrequ
ired
.Key
Adv
iserisreq
uired.
Nospon
sorisrequ
ired
.Nospon
sorisrequ
ired
.Nom
inated
adv
isor(NOMAD)isreq
uired
andretained
ata
lltimes.
Ad
mis
sion
do
cum
ent
Prospe
ctus
,pre-vettedan
dap
prov
edby
UKLA
.Prospe
ctus
,pre-vettedan
dap
prov
ed
byUKLA
.Prospe
ctus
,pre-vettedan
dap
prov
edby
UKLA
.Prospe
ctus
,pre-vettedan
dap
prov
edby
UKLA
.Adm
ission
doc
umen
tsnotpre-vettedby
theEx
chan
ge.T
heFSA
willvetanAIM
ad
mission
doc
umen
twhe
reitisalsoa
prospe
ctusund
erth
eProspe
ctusDirective.
FTSE
inde
x in
clu
sion
FTSE
UKseriespe
rmitted,sub
jectto
eligibilityifnotaUKplc.
Notpermitted.
Notpermitted.
Notpermitted.
FTSE
AIM
series.
Min
imu
m %
fre
e fl
oat
Minim
um25%
ofsha
resinpub
lichan
ds.
Minim
um10%
ofsha
resinpub
lichan
ds.
Minim
um25%
ofsha
resinpub
lichan
ds.
Minim
um25%
ofG
DRs(notund
erlying
shares)inpub
lichan
ds.
Norequ
irem
ents.
Min
imu
m
mar
ket
capi
tali
sati
on
Minim
um£70
0,00
0.The
value
ofthe
secur
itiesinpub
lichan
ds
mus
tbeatle
ast£
30m
illio
n.Minim
um£70
0,00
0.Minim
um£70
0,00
0.Norequ
irem
ents.
Con
trol
of a
sset
sCon
trolove
rthe
majorityofth
eissuer’s
assetsfo
rthe
threeye
arperiod.
Con
trolove
rthe
majorityofth
eissuer's
assets.
Norequ
irem
ents.
Norequ
irem
ents.
Norequ
irem
ents.
Rev
enu
e tr
ack
reco
rdAtlea
st75%
ofthe
entity’sbu
sine
ssm
ust
besup
ported
byareve
nueea
rningtrack
reco
rdfo
rthe
threeye
arperiod.
Certainexe
mptionsapp
lyto
mineraland
scientificresea
rchba
sedco
mpa
nies.
Growthin
con
solid
ated
rev
enue
fora
tleast2
0%onaCAGRbasisove
rthe
prior
threeye
ars.
The
issuerto
getherw
ithitssubsidiary
unde
rtak
ingsm
ustb
eatrad
ingbu
sine
ss.
Norequ
irem
ents.
Norequ
irem
ents.
Norequ
irem
ents.
Fin
anci
al t
rack
re
cord
Threeyea
rsofa
udited
accou
ntswith
unqu
alifiedau
dito
pinion
s.
Aud
ited
fina
ncialinformationmus
tnot
bem
orethan
sixm
onthsold,in
clud
ing
interimin
form
ationifapp
ropriate.
Threeyea
rsofa
udited
accou
nts(or
shorterp
eriodsinc
einco
rporation).
Interimfina
ncialinformation(w
hich
may
be
una
udited
)isreq
uiredifth
elast
auditedan
nualaccou
ntsaremorethan
nine
mon
thsold.
Sameasfo
rthe
MainMarketH
ighGrowth
Segm
ente
quitylisting
requ
irem
ents.
Sameasfo
rthe
MainMarketH
ighGrowth
Segm
ente
quitylisting
requ
irem
ents.
Threeyea
rsofa
udited
accou
nts(or
shorterp
eriodsinc
einco
rporation).
Interimfina
ncialinformation(w
hich
may
be
una
udited
)isreq
uiredifth
elast
auditedan
nualaccou
ntsaremorethan
nine
mon
thsold.
Acc
oun
tin
g G
AA
PAccou
ntsmus
tbeprep
ared
und
erIF
RSas
adop
tedby
theEU
(otherapp
rove
dGAAPsfo
rnon
-EEAissuers).
Ata
minim
um,the
lasttw
oye
ars
fina
ncialinformationmus
tberestated
on
toth
eba
sistobeap
pliedinth
eissuer’s
nextann
uala
ccou
nts.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Fina
ncialinformationmustb
epresen
tedin
accordan
cewith
EUIF
RS(oro
therapp
roved
GAAPsforn
on-EEA
and
Cha
nnelIsland
issuerso
rnationa
lGAAPwith
reconciliation
tooneoftheapp
rovedstan
dards).
Oth
er e
ligi
bili
ty
requ
irem
ents
Con
firmationthatade
quatefin
ancial
positio
nan
dprospe
ctsp
rocedu
resa
rein
place.
Statem
entisrequiredthatth
eissuerhas
sufficientworking
capita
lforatleastth
ene
xt
twelvem
onthsfromth
eda
teofprospectus.
Proformainform
ation,re
ported
onbyan
accoun
tant,isrequiredifthereha
sbeena
sign
ificantcha
nge.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Statem
entisrequ
ired
thatth
eissuerhas
sufficientworking
cap
italfo
ratlea
stth
ene
xttw
elvem
onthsfrom
theda
teof
prospe
ctus
.
Proformainform
ation,re
ported
onby
an
accoun
tant,isreq
uiredifthereha
sbeena
sign
ifican
tcha
nge.
Proformainform
ationisnotreq
uired,but
gene
rally
ispresented
ifth
ereha
sbe
ena
sign
ifican
tcha
nge.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Fin
anci
al d
ue
dil
igen
ce w
ork
stre
ams
Normallyreq
uiredby
theSp
onsor:
•Lo
ngfo
rmrep
ort.
•Fina
ncialrep
orting
procedu
resrepo
rt.
•Working
cap
italrep
ort.
Normallyreq
uiredby
theKey
Adv
iser:
•Lo
ngfo
rmrep
ort.
•Fina
ncialrep
orting
procedu
resrepo
rt.
•Working
cap
italrep
ort.
Fina
nciald
uedilige
nceworkstream
sde
pend
onthe requ
irem
entsof
unde
rwriters.
Fina
nciald
uedilige
nceworkstream
sde
pend
onthe requ
irem
entsof
unde
rwriters.
Normallyreq
uiredby
theNOMAD:
•Lo
ngfo
rmrep
ort.
•Fina
ncialrep
orting
procedu
resrepo
rt.
•Working
cap
italrep
ort.
PwC
Exe
cutin
g a
succ
essf
ul li
stin
g -
Lond
on 7
On
goin
g ob
liga
tion
s: M
ain
Ma
rket
Pre
miu
m, M
ain
Ma
rket
Hig
h G
row
th S
egm
ent
an
d M
ain
Ma
rket
Sta
nd
ard
list
ings
an
d A
IM q
uot
ati
ons
Mai
n M
arke
t Pre
miu
mM
ain
Mar
ket
Hig
h G
row
th S
egm
ent
Mai
n M
arke
t Sta
ndar
dA
IM
Equ
ity
shar
esE
quit
y sh
ares
Equ
ity
shar
esG
DR
sE
quit
y sh
ares
Cor
por
ate
gove
rnan
ceCom
pliancewiththeUKCorpo
rate
Gov
erna
nceCod
eorexp
lana
tion
of
non-compliance.
Corpo
rategov
erna
ncestatem
entis
requ
ired
inann
ualrep
ortinacco
rdan
ce
withDisclosurean
dTran
sparen
cyRules.
Corpo
rategov
erna
ncestatem
entis
requ
ired
inann
ualrep
ortinacco
rdan
ce
withDisclosurean
dTran
sparen
cyRules.
Sameasfo
rthe
MainMarketH
ighGrowth
Segm
ente
quitylisting
requ
irem
ents.
Sameasfo
rthe
MainMarketH
ighGrowth
Segm
ente
quitylisting
requ
irem
ents.
Nospecificreg
ulatoryrequ
irem
ents,
howev
erapp
ropriatele
velo
fcorpo
rate
gove
rnan
ceisexp
ected.
Sign
ific
ant
tran
sact
ion
sInside
inform
ationmus
tbedisclosedto
themarke
twitho
utdelay.
Ann
ounc
emen
tisrequ
ired
fors
ignifica
nt
tran
sactionssuc
hasacq
uisition
san
ddisposals,excee
ding
5%ofa
nyclasste
sts.
Shareh
olde
rapp
rova
l,acircularand
ap
pointm
ento
faspo
nsorarereq
uiredfor
sign
ifican
ttrans
action
sex
ceed
ing25
%of
anyclasstests.
Shareh
olde
rapp
rova
l,acircularand
ap
pointm
ento
faspo
nsorisreq
uiredfor
relatedpa
rtytran
sactionsexcee
ding
5%
ofany
classte
sts.
Rev
erseta
keov
ers,w
hereany
classte
st
exceed
s10
0%,req
uirere-ad
mission
includ
ingpu
blicationofaprospectusan
dshareh
olde
rapp
rova
l.
Inside
inform
ationmus
tbedisclosedto
themarke
twitho
utdelay.
Ann
ounc
emen
tisrequ
ired
forn
otifiable
tran
sactionsexcee
ding
25%
ofa
nyofthe
classtests.
Ann
ounc
emen
tisrequ
ired
forr
elated
pa
rtytran
sactionsexcee
ding
5%ofa
nyof
theclasstests.
Rev
erseta
keov
erswhe
reany
classte
sts
exceed
s10
0%req
uirere-ad
mission
to
HGSinclud
ingpu
blicationofan
admission
doc
umen
tand
sha
reho
lder
approv
al.
Inside
inform
ationmus
tbedisclosedto
themarke
twitho
utdelay.
Nospecificreq
uiremen
tsfo
rsignifica
nt
tran
sactions
.
Rev
erseta
keov
ersrequ
irere-adm
ission
includ
ingpu
blicationofaprospectus
andshareh
olde
rapp
rova
l.
Inside
inform
ationmus
tbedisclosedto
themarke
twitho
utdelay.
Nospecificreq
uiremen
tsfo
rsignifica
nt
tran
sactions
.
Inside
inform
ationmus
tbedisclosedto
themarke
twitho
utdelay.
Ann
ounc
emen
tisrequ
ired
forn
otifiable
tran
sactionsexcee
ding
10%
ofc
lasste
sts.
Ann
ouncem
entisreq
uiredforrelated
party
tran
sactionsexceeding
5%ofa
nyofthe
classtests.
Dispo
salsin
atw
elvem
onthperiod
exceed
ing75
%in
any
ofthe
classte
sts
requ
irepu
blicationofacircu
lara
nd
shareh
olde
rapp
rova
l.
Reverseta
keov
ersw
hereany
classte
st
exceed
s100
%re
quirere-adm
ission
toAIM
includ
ingpu
blicationofanad
mission
do
cumen
tand
shareh
olde
rapp
rova
l.
Furt
her
equ
ity
issu
esProspe
ctusisreq
uiredtobeissued
whe
noffering
excee
ds10%
ofe
xistingshares
overtw
elvem
onthperiod.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Normallyprospectusisreq
uiredforissue
sup
toth
etotallim
itofthe
blocklisting.
Adm
ission
doc
umen
tisrequ
ired
whe
rea
prospe
ctusisreq
uiredun
derthe
Prospe
ctusRules,a
new
classofsecur
ities
isto
bead
mitted,orthe
tran
saction
qualifiesas arev
erseta
keov
er.
Fin
anci
al
rep
orti
ng
obli
gati
ons
Ann
ualfinan
cialrep
ortistobepu
blishe
dwithinfourm
onthsofth
eye
arend
.
Half-ye
arfina
ncialrep
ortsareto
be
publishe
dwithintw
omon
thsofth
erepo
rtingpe
riod
end
.
Interimm
anag
emen
tstatemen
tsareto
be
publishe
dtw
iceaye
ar.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Sameasfo
rthe
MainMarketP
remium
equitylisting requ
irem
ents.
Ann
ualfinan
cialrep
ortistobepu
blishe
dwithinfourm
onthsofth
eye
arend
.
Half-ye
arfina
ncialrep
ortsarenot
requ
ired
,butaregen
erallyissued
.
Interimm
anag
emen
tstatemen
tsare
notreq
uired.
Ann
ualfinan
cialre
portsa
reto
bepu
blishe
dwithinsixmon
ths ofth
eye
arend
.
Half-ye
arfina
ncialrep
ortsareto
be
publishe
dwithinthreemon
thsofth
erepo
rtingpe
riod
end
.
Interimm
anag
emen
tstatemen
tsare
notreq
uired.
Ad
dit
ion
al s
pec
ific
ru
les
an
d
exem
pti
ons
ap
ply
to:
Min
era
l co
mp
an
ies
Scie
nti
fic
rese
arc
h-b
ase
d c
om
pa
nie
s
Inve
stm
ent
com
pa
nie
s a
nd
fun
ds
8 Executing a successful listing - London PwC
Corporate governance
UndertheListingRulesPremiumlistedcompaniesarerequiredtoapplytheprinciplesoftheUKCorporateGovernanceCodeandcomplywithitsprovisionsorexplainhowtheyachievedgoodgovernancebyothermeans.CompanieswithaHighGrowthSegmentorStandardlistingcanchoosetocomplywiththeirdomesticcorporategovernancecode.
TheUKCorporateGovernanceCodeisbestpracticeforAIMcompaniesbuttherearenospecificrequirements.TheUKQuotedCompaniesAlliancehasissuedguidelines(regardingcorporategovernance)forsmallerquotedcompanies
Summary of the key areas of the UK Corporate Governance Code
UK Corporate Governance Code principleBoard of Directors • Thecompanyshouldbeheadedbyaneffectiveboard,whoseresponsibilitiesareseparatefromtheday
todayrunningofthebusiness.
• Atleasthalftheboard(excludingtheChairman)shouldcompriseindependentnon-executivedirectors(INEDs).
• Forsmallercompanies(belowFTSE350)onlytwoINEDSarerequiredtobeontheboard.
Senior independent director • Oneindependentnon-executivedirectorshouldbeappointedasseniorindependentdirectortoprovideasoundingboardfortheChairmanandintermediaryfortheotherdirectors.
Chairman • TheroleoftheChairmanandchiefexecutiveshouldnotbeexercisedbythesameindividual.Thechairmanshouldonappointmentbeindependent.
Audit committee • Anauditcommitteeofatleastthree,orinthecaseofsmallercompaniestwo,independentnon-executivedirectorsshouldbesetup.
Nomination and Remuneration committee
• Nominationandremunerationcommitteesshouldbesetup–withamajorityofmembersbeingindependentnon-executivedirectors.
Risk management and internal control
• Asignificantportionofexecutivedirectors’remunerationshouldbestructuredsoastolinkrewardstocorporateperformance.
Internal controls effectiveness assessment
• Theboardshouldensurethecompanymaintainsasoundsystemofinternalcontrol.
Relationship with shareholders
• TheBoardisresponsibleforensuringthatasatisfactorydialoguewithshareholderstakesplace.
• InFTSE350companies,anexternallyfacilitatedboardevaluationshouldbecarriedouteverythreeyears.
AGM • Theboardshouldusetheannualgeneralmeetingtocommunicatewithinvestors.
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Market indices FTSEseriesInclusionintheFTSEUKIndexSeriesisdeterminedbytheFTSEcommittee.TheFTSEUKIndexSeriesisopentoeligiblePremiumListedMainMarketcompanies.CompanieswithaStandardListingarenoteligibleforinclusionintheFTSEUKIndexSeries.
FTSE 100TheFTSE100Indexisoneoftheworld’smostrecognisedindices.Itrepresentstheperformanceofthe100largestUK-domiciledbluechipcompanieswhichmeetFTSE’ssizeandliquidityscreening.TheindexiscurrentlyusedasthebasisforawealthoffinancialproductsavailableontheExchangeandglobally.
FTSE 250TheFTSE250Indexiscomprisedofmid-sizedcompanies.Thisindexisdesignedtomeasuretheperformanceofthemid-capsegmentsintheUKmarketwhichfalljustbelowtheFTSE100Indexinsizeandliquidity.
FTSE Small Cap TheFTSESmallCapconsistsofcompaniesoutsidetheFTSE100andFTSE250indices.
FTSE All-Share TheFTSEAll-ShareIndexrepresentstheperformanceofalleligiblecompanieslistedontheMainMarket.ItisconsideredtobethebestperformancemeasureoftheoverallLondonequitymarket,withthevastmajorityofmoneyinvestedinfundsbenchmarkedagainstit.TheFTSEAll-ShareIndexistheaggregationoftheFTSE100,FTSE250andFTSESmallCapIndices.
FTSE Russia IOB (FTSE RIOB)TheFTSERussiaIOBiscomprisedofthefifteenlargestRussianDepositaryReceipts(DRs)listedontheLSE’sInternationalOrderBook(IOB).
AIM indicesTradinginAIMissupportedthroughtheAIMindexseries,whichincludesthe:
• FTSEAIM50UKIndex;
• FTSEAIM100Index;
• FTSEAIMAll-ShareIndex;and,
• FTSEAIMAll-ShareSupersectorIndex.
Eachindexhasspecificeligibilitycriteriarelatingtogeneralliquidityandfreefloatrequirements.
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Indicative IPO timeline and process
Theflotationtimelineforeachmarketdiffersduetothevaryinglevelofregulatoryrequirements.ThefollowingchartgivesanindicationoftheIPOprocess:
*Somecompaniessuchasrealestateandmineralcompaniesarerequiredtoincludevaluationortechnicalexpertreportsintheprospectus.
Typically 4 – 6 months
General
Appointment of key advisers
Financial reporting procedure report
Business and financial due diligence (the ‘long form report’)
Corporate governance
Tax planningand employeeincentives
Legal due diligence
Confirmation ofeligibility
Low profile institutionalmarketing
Announcementof intention to float
Fine tune pricing valuation modelPricing
Pressreleaseissued
High profileinstitutionalmarketing
Final verificationnotes issued
Final• Pricing and allocation• Board meeting• Long form report• Short form report• Working capital report• Ancillary
documents issued
Final legaldocuments issued
Expert’s report*
Drafting prospectus; regulator comment letters
UKLA vetting and approval of prospectus
Prospectus verification
Draft legal documentationDraft memo and articles of association updated
Working capital report
Accountants’ opinion on financial information for three years
Transaction and corporate structure, including tax structuring
Develop equity story
Impactday
Path
finde
ris
sued
Pros
pect
usis
sued
Proc
eeds
pai
dto
com
pany
and
vend
ors
Reportingaccountants
Legaladvisors
Regulation anddocumentation
Marketing
Other
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How PwC can help you
ExecutingasuccessfulIPOistypicallytheculminationofacomplexprocess,whatevermarketyouliston.Fromstrategy,accounting,reporting,financialsystems,governance,mediaandinvestorrelations,totreasuryandfinancialriskmanagement,legal,tax,HR,technology–everypieceofthepuzzlemustbeinplace,andconnectedbeforeyouproceed.
Planningandgoodpreparationarecrucialtoasuccessfulflotation,regardlessofthemarketorstockexchange.PwC’sdedicatedteamofcapitalmarketsprofessionalsareheretohelpandmakethetaskathandaneasierexperienceforyou.Wehavedeepexperienceandknowledgeoftherulesandregulationsgoverningallmajorcapitalmarkets—andasuccessfulhistoryofworkingonbothinternationalanddomesticIPOs.
Wecanassistwithallaspectsofyourpublicoffering,including:
• ConductinganIPOreadinessassessment.
• Taxstructuringandplanningadvice,includingchoiceofholdingcompanylocation.
• Selectingtherightmarketandadvisoryteam.
• Assistancewiththedraftingofyourprospectusorofferingmemorandum.
• Publicreportingonyourhistoricalfinancialrecord.
• Advisingonregulatoryandothercomplianceissues.
• Managingcomplextransactionprojects.
• Assistingwithcomplexaccountingissues.
• Privateduediligencereports(e.g.onfinancialreportingprocedures)andcomfortletters.
• Reportingonprofitforecastsandotherprospectivefinancialinformation.
• Preparationof,orassuranceover,yourworkingcapitalforecastmodel.
• Designingexecutiveandemployeecompensationschemes.
• Adviceoncontinuingobligationsasapubliccompany.
• AdviceontheUKBriberyAct.
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Capital Markets contacts in London
Richard Weaver
Tel:+44(0)[email protected]
Mark Hughes
Tel:+44(0)[email protected]
Ursula Newton
Tel:+44(0)[email protected]
Philip Tew
Tel:+44(0)[email protected]
Kevin Desmond
Tel:+44(0)[email protected]
PwC Executing a successful listing - London 13
IPO Centre – London team
Clifford Tompsett
Tel:+44(0)[email protected]
Katya Kuznetsova
Tel:+44(0)[email protected]
Neil Cook
Tel:+44(0)[email protected]
About the IPO Centre
OurIPOCentrewascreatedtomakeiteasierforyoutounderstandwhatyouneedtoknowanddotocompleteanIPO.WebringtogetheroursectorexpertiseandourknowledgeoflocalandinternationalcapitalmarketstohelpyouevaluatetheprosandconsofIPO,takeyouthroughtheflotationprocessandprepareyourbusinessforlifeasapubliccompany,regardlessofthemarketyouchoosetoliston.
www.pwc.com/ipocentreThis publication has been prepared for general guidance on matters of interest only, and does not constitute professional advice. You should not act upon the information contained in this publication without obtaining specific professional advice. No representation or warranty (express or implied) is given as to the accuracy or completeness of the information contained in this publication, and, to the extent permitted by law, PricewaterhouseCoopers LLP, its members, employees and agents do not accept or assume any liability, responsibility or duty of care for any consequences of you or anyone else acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it.
© 2013 PricewaterhouseCoopers LLP. All rights reserved. In this document, "PwC" refers to the UK member firm, and may sometimes refer to the PwC network. Each member firm is a separate legal entity. Please see www.pwc.com/structure for further details.
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