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Company flotations

The London Stock Exchange market (LSE)

This is an infrastructure which allows listed companies to trade and raise equity capital.  You, as a business owner, may choose to use the market as a means to raise capital for continued or accelerated expansion.  Being listed on the stock exchange does, however, involve continuous requirements, including reporting duties and the associated costs.

The LSE operates two stock exchange markets: the main market and AIM (Alternative Investment Market). Companies listed on AIM, in general, have smaller market capitalisation than main market listed companies. 

OFEX is an off-exchange dealing facility operated by OFEX plc. OFEX continues to be the largest single source of new entrants to AIM.  The financial community and media recognise OFEX as complementary to AIM, rather than as a competitor. OFEX fits the fund raising £0.5m to £5m niche, leaving the equity gap at the earlier stage of funding.

There are other stock exchange markets such as Europe’s junior stock markets, techMARK, etc.

Which market is best for you?

We can help you make this decision.  But, as a starting point, you should be able to answer ‘yes’ to the following questions before considering the market:

For the main market

- Are you willing to raise capital by going public?
- Are you a large company with market capitalisation of at least £0.7m?
- Do you have audited three-year accounts?

For AIM

- Are you willing to raise capital by going public?
- Are you a smaller company or young business?
- Do you wish to expand your business?
- Are you able to demonstrate the value of the expertise that has already been developed?
- Do you have three-year accounts?

For OFEX

- Are you willing to raise capital by going public?
- Are you a smaller company or young business wishing to raise seed capital?
- Do you plan to raise funds between £0.25m and £0.5m?

How can we help you?

We can advise you throughout the flotation process guiding you through the entire course by providing some or all of the following services:

• a review of the suitability of flotation and choice of the stock exchange market;
• a time-schedule and plan of the transaction;
• preparation of the business model;
• preparation of the budget for expenses;
• financial modelling and business valuation;
• identification of investors and approaching them;
• liaising with the stock exchange market authorities;
• assisting with prospectus preparation;
• additional services – tax advisory, arrangement of contact with brokers and law firms.

We have a sound understanding of the listing requirements, and on-going, post-listing obligations.  We can inform you of how stock exchange markets work and about the flotation process.

Through our network of contacts, we can identify a short-list of investors who would be interested in investing in your business.  In addition, we have good relationships with stockbrokers and will recommend and liaise with the best ones for your business.

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