Transcript Document

London Stock Exchange
for companies from Cheliabinsk region
AGENDA
•
•
•
•
November 2006
Why London?
–
Reasons for listing
–
Managed assets
–
Main Market or AIM?
Main Market
–
International listings comparison
–
Seasonality
–
DR trading on the IOB
–
Top 10 companies traded on the IOB
AIM
–
Capital raised
–
AIM growth
–
Total AIM IPOs
–
Access to capital
–
Cost structure
How to find us?
–
Russian website
–
Contact details
2
Main reasons for listing on the LSE
Liquidity
Increasing and
maintaining
liquidity
Capital
Raising it efficiently
& effectively when
required
Profile
Growth
Maximising
marketing/PR
opportunities
Independent Market
Expertise
Recommendations on how to maximise
the value of joining a London market
The LSE supports customers in maximising shareholder value through supporting capital
raising and generating liquidity whilst maximising opportunities from their increased profile
November 2006
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Volume of Assets Managed
in Financial Centres
Equity ($, billion)
10000
$3,081
12000
$7,584
14000
8000
6000
4000
2000
0
London
New York
Boston
San
Francisco
Los
Angeles
Chicago
Paris
Frankfurt
Munich
Fund management activities in the UK are concentrated in a single location – London.
Source: Big Dough, Hemscott (September 2005)
November 2006
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Main Market or AIM?
Main Market
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Pre-vetting of Prospectus by the UKLA
Compliance required with the rules of the UKLA
Normally a three-year trading record required
Minimum of 25% of GDRs/shares in public hands
Prior shareholders approval for certain transactions
Sponsors needed for certain transactions
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Regulation by the LSE
No trading record required
No minimum amount of shares to be in public hands
In most cases, no prior shareholder approval required for
transactions
Normally, admission documents not pre-vetted by Exchange
or UKLA but by nominated adviser (Nomad)
Nomad required at all times
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November 2006
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AGENDA
•
•
•
•
November 2006
Why London?
–
Reasons for listing
–
Managed assets
–
Main Market or AIM?
Main Market
–
International listings comparison
–
Seasonality
–
DR trading on the IOB
–
Top 10 companies traded on the IOB
AIM
–
Capital raised
–
AIM growth
–
Total AIM IPOs
–
Access to capital
–
Cost structure
How to find us?
–
Russian website
–
Contact details
6
International Listings
Total New International Issues for Main Market
2003
2004
3
2005
New Issues
2006
2
1
0
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Nov
Dec
The Exchange’s Main Market continues to be an attractive venue for the international listings.
Source: London Stock Exchange, August 2006
November 2006
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International IPOs
seasonality
Money Raised in International IPOs on Main Market in 2006 YTD ($mn)
6,794
Russian Company
Other International
Company
Feb-06
Mar06
Apr-06
May06
Jul-06
TMK
372
336
Severstal
Kazmunaigas
Oct-06
1,062
972
Chelyabinsk
683
Sistema Hals
639
153
A&D Pharma
Napo
Pharmaceuticals
18
Rosneft
244
578
Colt Telecom
125
Cherkizovo
66
Goldenport
98
Rolta
Kingdom Hotels
Lotte
Comstar
474
Carador
1,070
Aer Lingus
3,010
Nov-06
In 2006, 17 international companies have raised over $16 billion on the Exchange’s Main
Market.
Source: London Stock Exchange, November 2006
November 2006
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DR trading on IOB
Trading of DRs on International Order Book
(2001 - 7 MNTHS 2006)
Turnover $
200
Trades
600
180
500
160
140
120
100
300
Trades '000
Trade value $ billion
400
80
200
60
40
100
20
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0
2001
2002
2003
2004
2005
7
MNTHS
2006
In 2005, IOB total trading turnover was $131bn and in the first 7 months of 2006 that
number increased to $172bn.
Source: London Stock Exchange - July 2006
November 2006
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Top 10 companies traded on IOB
70,000
180
160
60,000
Total Trade Value
140
Total Trades
120
40,000
100
80
30,000
60
20,000
40
10,000
20
0
0
Lukoil
Gazprom
Orascom
Samsung
Rosneft
Novatek
OTP BANK
Lotte
Evraz
Jan-Oct 2006
CIS IOB trade value reached 73% of all IOB trade this October, a new record high.
Source: London Stock Exchange trade statistics
November 2006
Trades (thousands)
Trade Value ($ mn)
50,000
10
Magyar
AGENDA
•
•
•
•
November 2006
Why London?
–
Reasons for listing
–
Managed assets
–
Main Market or AIM?
Main Market
–
International listings comparison
–
Seasonality
–
DR trading on the IOB
–
Top 10 companies traded on the IOB
AIM
–
Capital raised
–
AIM growth
–
Total AIM IPOs
–
Access to capital
–
Cost structure
How to find us?
–
Russian website
–
Contact details
11
2006 – A Record Year for Capital Raised on AIM*
Total Money Raised ($m)
25,000.00
20,000.00
15,000.00
5,000.00
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1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005
The success of AIM continues to grow and so does its investor base.
Source: London Stock Exchange, November 2006, *Includes further capital raises
November 2006
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$19,406
$16,997
10,000.00
30Oct06
AIM growth - 2006
Market Cap at Admission ($,m) 833
841
Market Cap Today ($,m)
519
Max Petroleum
Urals Energy
AIM supports growing companies
November 2006
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269
14 Months
13 Months
162
11 Months
371
Raven Russia
Total AIM IPOs - 2006
50
$76
$73
Number of
Companies
$69
45
70
$62
40
30
50
$44
$43
25
40
44
$33
20
30
$20
12
19
17
21
10
22
26
15
31
$24
Avg Raise
($m)
20
10
7
5
Avg Raise ($mn)
60
35
22
Number of Companies
80
$73
0
0
Jan-06
Feb-06
Mar-06
Apr-06
May-06
Jun-06
Jul-06
Aug-06
Sep-06
Oct-06
2006 has been a successful year for AIM with over $12bn raised at IPO this year alone.
Source: London Stock Exchange, November 2006
November 2006
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Access to further capital
Money Raised on AIM ($,m)*
2,784
1,200
IPO $ Raised
Further $ Raised
AIM listing gives companies access to raise further capital after IPO.
Source: London Stock Exchange, August 2006
November 2006
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Cost structure for AIM listing
Legal reports and negotiations
Law Firm
(NOMAD’s)
Prospectus
Preparation
Law Firm
(Corporate)
£150K- £300K,
Of which NOMAD’s
Lawyers get 25%- 40%
£150K- £200K
plus
1% of the firm
NOMAD
Reporting
Accountants
Company
Underwriting &
analytical coverage
Broker
£100K- £150K
3 - 5% of
the deal, plus
1% of the firm
£10K
Listing and trading Services
Short - form
report
Technology
Experts
£25K- £50K
Public Relations and
Investor Relations
Stock Exchange: AIM
LHC
CREST Co
Registrar
PR firms
Independent
Researchers
The total cost of raising £50mn ranges between £2.5 - £5mn (5%-10% cost range) excluding
value of options.
Source: Oxford Said Business School MBA Project, August 2006 as amended by London Stock Exchange
November 2006
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AGENDA
•
•
•
•
November 2006
Why London?
–
Reasons for listing
–
Managed assets
–
Main Market or AIM?
Main Market
–
International listings comparison
–
Seasonality
–
DR trading on the IOB
–
Top 10 companies traded on the IOB
–
30/70 Rule - Rosneft
AIM
–
Capital raised
–
AIM growth
–
Total AIM IPOs
–
Access to capital
–
Cost structure
How to find us?
–
Russian website
–
Contact details
17
Russian website
www.londonstockexchange.com/ru
November 2006
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Contact Details
Jon Edwards
Senior Manager, CIS
+44 (0) 20 7797 1599
[email protected]
Zarina Korolova
Manager, CIS
+44 (0) 20 7797 4472
[email protected]
WWW.LONDONSTOCKEXCHANGE.COM/RU
November 2006
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