Transcript AIM: The World’s Most Successful Growth Market

Heart of the world’s financial markets
Prepared for the Institute of Directors
May 2012
London is the premier listing choice
Through our group companies
we endeavour to provide the
best listing and trading
environment for our issuers
LIQUIDITY
PROFILE
INVESTORS
Global Financial
Centres index
Global Financial
Centres index
Global Financial
Centres index
Global Financial
Centres index
Global Financial
Centres index
Global Financial
Centres index
Global Financial
Centres index
London’s ranking
London’s ranking
London’s ranking
London’s ranking
London’s ranking
London’s ranking
London’s ranking
1st
Edition 4
Sept 2008
1st
Edition 5
March 2009
1st
1st
1st
1st
Edition 6
Sept 2009
Edition 7
March 2010
Edition 8
Sept 2010
Edition 9
March 2011
1st
Edition 10
Sept 2011
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London is a global hub for international investors
All major global investors sit in London are able to access London Stock
Exchange traded stocks
Assets managed in the UK and globally out of London – ten largest investment firms
…sitting in a time zone which can
trade with the world
London trading hours
0
-11 -10 -9
-8 -7
-6
-5 -4 -3 -2 -1 0
+1 +2 +3 +4 +5 +6 +7 +8 +9 +10 +11
USD million
Source: Investment Management Association:
Asset Management in the UK 2009-2011.
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London Stock Exchange offers a diverse range of
markets
EU
Regulated
markets
Securities admitted to
official list
Securities not admitted
to official list
(maintained by UKLA)
(maintained by UKLA)
Main Market
Specialist Fund
Market
From Small to Large:
The choice of market will depend
on a number of factors including:
Exchange
Regulated
markets
Professional
Securities
Market
• Stage in a company’s
development
AIM
• Complexity of the offer and
securities issued
• Target investors
• Company’s size
• Company's strategy and objectives
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AIM: The World’s Most Successful Growth Market
AIM companies have operations across the
globe from 95 countries
15
40
UK: 685
65
50
23
9
42
11
59
Number of companies
60 +
1
29
36
26
40-59
20-39
0-19
24
Other offshore: 10
Isle of Man & Channel Islands: 18
Source: London Stock Exchange statistics – February 2012
NB: Number of companies colour coded per grouping rather than country
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AIM covers an unparalleled range of sectors
INDUSTRY REPRESENTATION BY NUMBER OF COMPANIES
Telecoms; 13
Financials; 249
Utilities; 11
Consumer
Services; 109
Health
Care; 64
Technology; 108
Industrials; 212
Consumer
Goods; 57
Basic Materials;
170
Oil & Gas; 129
Source: London Stock Exchange trade statistics – February 2012
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AIM provides access to the world’s leading
institutional investors
The investor base for AIM companies is institutional and retail.
Investor
Number of
investments
Value of investments
(EUR million)
Blackrock
141
2,188
Fidelity
86
1,025
Invesco
55
863
Lloyds Banking Group
56
800
Prudential
43
774
Henderson Global Investors
167
732
Capital Group Companies
35
694
Challice Limited
1
602
Citvic Nominees
5
581
JPMorgan Chase
64
523
Source: GCI Institutional Investors in AIM survey 2011
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AIM enables companies to raise capital
throughout their life on market
16.2
Further money raised
New money raised
15.7
(in £ billions)
8.9
6.8
4.7
3.1
0.1
0.8
0.7
0.6
0.9
1.1
5.5
4.3
4.3
2.1
1.0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011
Source: London Stock Exchange statistics – February 2012
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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 Russon
Business Development Manager
UK Primary Markets
+44 (0)7766 421 679
[email protected]
www.londonstockexchange.com
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