VFB 2013 - Your route to an AIM listing - London Stock Exchange


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  • So the IPO markets are open! We have seen renewed activity in the capital markets this year both on the Main Market and AIM.On the Main Market we have seen a good level of issuance from Private Equity backed companies. Names such as Countrywide, Merlin, esure have all successfully floated this year. In total to the end of October we have seen 31 IPOs raise almost £9bn on the MM. AIM has been marginally more active with 41 IPOS raising £700m.Over the past few years, companies joniing the market have typically been from the natural resources sector. This year it has been very encouraging to see UK businesses looking at AIM as a source of development capital. We have seen a good mix of sectors ranging from software, media, medtech, real estate, retail, leisure come to AIM this year; I am delighted that Neill Ricketts from Versarien , an advanced materials group from Chippenham is also speaking alongside me at this worskhop as you will hear directly from someone who has been there and done that and who can share his experience and reasons for going public with you. Existing quoted companies are also making use of the capital markets and continuing to raise capital on our markets. A total of £24bn has been raised to date – some significant rights issues from Barclays, Lloyds –s secondary sell downs from.The chart at the bottom shows where we are in the cycle – looking at the inverse relationship between volatility and the capital markets.
  • VFB 2013 - Your route to an AIM listing - London Stock Exchange

    1. 1. Lucy Tarleton London Stock Exchange AIM for Growth
    2. 2. AIM for Growth November 2013
    3. 3. Why list on LSE Access to deepest pool of international capital in the world Proven levels of sustained liquidity Access to incremental research coverage An exit route for earlier stage investors Ability to incentivise key employees’ commitment Significantly enhanced profile & visibility, particularly with customers & suppliers Currency to fund business acquisitions & expand into new markets 3
    4. 4. Overview of London New Issue Markets 2012 2012 YTD 2013 YTD Money raised (IPO) (£bn) 2012 2012 YTD 2013 YTD Main Market 24 17 31 Main Market 6.8 5.0 AIM 43 33 41 AIM 0.6 Total 67 50 72 Total 7.4 Follow on Issues (£bn) 2012 2012 YTD 2013 YTD 8.8 Main Market 11.1 9.3 22.1 0.4 0.7 AIM 2.4 1.9 1.9 5.4 9.5 Total 13.5 11.2 24.0 45 40 35 30 25 20 15 10 5 0 60 40 30 20 Vix index 50 10 2004 2005 2006 2007 2008 Further issues 2009 New issues 2010 2011 2012 Q3 October Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 Q1 Q4 Q3 Q2 0 Q1 Deal value in £bn Number of IPOs 2013 VFTSE Source: Bloomberg and Dealogic, as of 31 October 2013 4
    5. 5. A choice of routes to market, ultimately dependent on company's stage of development, size & strategy Not public Funding requirement Market designation Exchange regulated EU Regulated Official List & EU Regulated £1bn £150m £1m £500k £100k £50k Concept & seed stage Start - Up Early Stage Expansion Consolidation & further capital raising Diversification of investors, M&A and International Expansion Strategic consideration 5
    6. 6. AIM is the leading market for growing companies aspiring to become larger global businesses Profile of AIM companies Admissions to AIM – 1995 to Sept 2013 228 179 132 133 519 1,090 1,090 companies, aggreg companies, aggreg ate value of £69bn ate value of £69bn 142 UK International 355 177 123 40 2 - 5m 5 - 10m 10 - 25m 25 - 50m 50 - 100m Market value range £m 100 250m 145 107 250 500m 500 1,000m Over 1,000m Fundraisings on AIM – 1995 to Sept 2013 Money raised £bn 114 102 90 71 66 36 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 to Sep Sectors represented – by number of companies Technology, 110 18 12 162 7 NB: Bar chart excludes 12 unvalued companies and 23 suspended 14 160 102 75 11 16 284 277 94 89 0 - 2m Over 3,400 companies raising £36bn at admission 462 Oil & Gas, 133 £82bn in total (£46bn through further issues) New Further Financials, 218 Basic Materials, 178 10 8 Utilities, 15 6 4 Telecommunicati ons, 12 2 Industrials, 194 Consumer Services, 101 0 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 to Sep 2013 Health Care, 67 Consumer Goods, 62 Source: London Stock Exchange Statistics 6
    7. 7. The benefits of the AIM network Access to capital Diverse & deep pool of capital Strong support from institutions Wide support network Nominated advisers Accountants Lawyers Banks/Brokers Analysts Financial PR / IR Media Profile Visibility Bargaining power with customers & suppliers Marketability of stock Global peer group 7
    8. 8. Understanding the AIM admission process & associated costs AIM pre-admission announcement (10 days prior to admission) Informal discussions & fact finding Appoint a nominated adviser Review of corporate structure, g overnance & Board Due diligence & drafting of admission document Investor discussions & placing agreements Placing finalised & completion meeting IPO THE START OF THE JOURNEY Costs of IPO Advisory & due diligence These include nomad, reporting accountants, lawyers and other due diligence costs. They are mainly dependent on complexity of the business & sector, but can be significantly higher for the Main Market due to legal costs of producing a Prospectus approved by the UKLA Exchange fees Incremental based on company’s market value Broker commission Actual % depends on the quantum & can be affected by sector and complexity of deal Ongoing compliance – can vary with corporate activity Nomad/Corporate adviser Similar for AIM & Main Market companies – as Main Market companies usually retain a corporate adviser Auditors • • Internal Costs Include corporate governance costs including non-executive directors as well as increased public relations & investor relations efforts Other Include exchange fees, registrars, website, AGMs etc Similar for comparable companies on AIM & the Main Market Can vary dependent on complexity of the business Fees may vary significantly depending on the size, complexity and sector of a company. 8
    9. 9. Liquidity and investors Avg daily value traded as % of total mkt cap AIM companies have comparable levels of daily liquidity to their Main Market peers Number of companies in each index and market cap group Market cap Range AIM All Share FTSE AIM All Share FTSE All Small £0-25m £25-100m £100-500m £500m+ Total 0.20% 440 241 114 13 808 47 109 210 6 372 FTSE All Small 0.15% 0.10% 0.05% 0.00% £0-25m £25-100m £100-500m £500m+ Market cap group *NB: The FTSE All-Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledging indices • AIM companies are supported by a deep pool of institutional capital, as well as an active retail investor base 140 130 120 • There is a dedicated network of market professionals (brokers, research analysts, advisors) 110 100 90 • The FTSE AIM 50 (which includes the 50 largest UK AIM companies) is the best performing UK index this year 80 31-Dec-12 31-Mar-13 FTSE AIM All Share 1-Jul-13 FTSE AIM 50 FTSE 100 FTSE All-Share Source: Liquidity data from Bloomberg -Time period analysed is the 6 month beginning March to August 2013. Analysis shows median within each market cap range. 9
    10. 10. Technology companies on our markets Sector AIM Main Market Electronic & Electrical Equipment 33 19 Fixed Line Telecommunications 4 17 Health Care Equipment & Services 28 11 Mobile Telecommunications 8 9 Pharmaceuticals & Biotechnology 39 17 Software & Computer Services 91 26 Tech Hardware & Equipment 19 20 Total 222 119 Total market cap (£bn) 14.5 653.6 Total raised (£bn) 3.3 13.0 • There are currently 341 companies in automatically qualifying tech sectors worth a combined £700bn. • Recent IPOs have been from innovative, fast growing companies including the likes of: Plus500 (£50m), CentralNic (£7m), NetScientific (£30m), Outsourcery plc, (£11m) Cambridge Cognition Holdings (£11m), Keywords (£28m), Wandisco (£15m) and RapidCloud international (£1m.) • Total capital raised across the technology sector on AIM and the Main Market to date is over £16bn. Market cap profile of technology companies on our markets £0-£100m £100-£500m £500m + 183 AIM 34 5 40 Main Market 22 57 Figures do not include PSM and SFM. September 2013. Based on country of domicile. Source: London Stock Exchange statistics. 10
    11. 11. Recent activity on AIM AIM Money raised: GBP 11m A UK based cloud computing and unified communications provider May 2013 AIM Money raised: GBP 5m Develops and commercialises computerised neuropsychological tests for sale worldwide, principally in the United Kingdom April 2013 AIM Money raised: GBP 8m Oregon USA-based medical device company that designs, develops and commercialises a range of non-invasive neurodiagnostic products. April 2013 AIM Money raised: GBP 1.53m Develops, markets and sells a physiological monitoring technology to the professional sports, consumer wellbeing and weight-loss markets March 2013 AIM Money raised: GBP 2.5m A UK based supplier of advanced testing systems to the global motor industry for research and development and for production quality control. May 2013 AIM Money raised: GBP 15m A virology healthcare business that provides clinical services May 2012 AIM Money raised: GBP 15m A provider of software for global enterprises to meet the needs of Big Data and distributed software development July 2012 AIM Money raised: GBP 6.03m Venn Life Sciences is a full-service clinical research and development organisation December 2012 11
    12. 12. Strong technology support in London 300 FTSE Tech Index performance vs global benchmarks Diversity of investors in London listed technology companies 250 Europe 10% 200 North America 25% 150 Asia Pacific 3% 100 UK 62% 50 Middle East and Africa 0.3% 0 Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13 FTSE AIM All Share S&P North American Technology Nasdaq Composite Index FTSE All Share technology FTSE All Share S&P 500 Information Technology • FTSE tech indices continue to outperform their global peers • UK tech investors are geographically diversified and are supported by an experienced advisory and analyst community Source: Bloomberg and London Stock Exchange. October 2013. Based on country of domicile. 12
    13. 13. Case studies
    14. 14. Case Study: Asos Transaction Details Company Details ASOS Admission Date 3 Oct 2001 Market AIM Money raised at admission £0.3m Sector Apparel Retailers Company Trading System Ticker SETS ASC Country of incorporation UK Company profile  ASOS is a global online fashion and beauty retailer and offers over 65,000 branded and own label product lines across womenswear, menswear, footwear, accessories, jewellery and beauty. It is the UK’s largest online-only fashion and beauty store.  ASOS has websites targeting the UK, USA, France, Germany, Spain, Italy, Australia and Russia also ships to 237 other countries from its central distribution centre in the UK.  ASOS attracts 21.3 million unique visitors a month and as at 31 August 2013 had 13.2 million registered users and 7.1 million active customers. 1,400 ASOS vs FTSE AIM All Share rebased at 100 1,200 1,000 800 Market cap at admission £12.32m Current Market cap £4,896 m 200 JPMorgan Cazenove 0 NOMAD/Broker 600 400 Listing story  Admitted to AIM in October 2001 raising £300k and with a market capitalisation of £12m.  Currently one of the fastest growing UK online retailers and also one of the biggest companies on AIM by market cap at over £3bn.  comScore rankings for 15-34 year olds in 2012 showed ASOS as the most visited fashion website daily.  At the time ASOS joined AIM in 2001, the company had revenues of less than £1m and was loss making. In 2012, the company recorded strong profits and posted revenues of £495m Jun-08 Jun-09 Jun-10 ASOS PLC Jun-11 Jun-12 Jun-13 FTSE AIM All Share Leading Investors Value held USD millions Baillie Gifford & Co. 265.7 Standard Life Investments Ltd. 265.0 Capital Research & Management Co. (Glob... 220.9 OppenheimerFunds, Inc. 107.1 Fidelity Management & Research Co. 90.7 William Blair & Co. LLC (Investment Man... 56.9 FIL Investments International 56.6 Robeco Institutional Asset Management BV 50.4 Hargreave Hale Ltd. 48.6 Source: FactSet and LSE Trading data, November 2013 14
    15. 15. Case Study: WANdisco Transaction Details Company Details Company 700 WANdisco plc Admission date: 1 June 2012 Market AIM £15m 500 Sector Software & Computer Services Money raised at admission WANdisco vs FTSE AIM All Share 600 Trading system SETSqx Ticker WAND Country of incorporation UK 400 Market cap at admission Current Market cap £288.9m Nominated Adviser and Broker Panmure Gordon 300 200 100 0 Jun-2012 Company profile  WANdisco is a leading provider of global collaboration software to the software development industry. The company is headquartered in Sheffield, UK, with significant operations in Silicon Valley, California  WANdisco’s differentiated patent-pending technology, the Distributed Coordinated Engine, provides a cost-effective method to maintain continued synchronisation between geographically distributed servers. This technology in conjunction with “Subversion”, an open source version control system, allows software developers at globally distributed sites to access the same program data at all times.  Revenue increased by 30%, from USD3.0 m in 2010 to $3.9million in 2011 £37m Listing story  WANdisco’s IPO was almost four times oversubscribed  WANdisco plc planned to use the net proceeds of the placing on opening an office in China, further product development, reducing current level of provisions and other payables and potentially on complementary technology acquisitions.  WANdisco completed a £19m equity placing in September 2013 from existing and new shareholders. Oct-2012 WANdisco Feb-2013 Jun-2013 Oct-2013 FTSE AIM All Share Index Leading Investors Value held $m Cazenove Capital Management Ltd. 40.5 Legal & General Investment Management 20.2 Artemis Investment Management LLP 14.0 BlackRock Investment Management (UK) 13.2 Hargreave Hale Ltd. 12.4 Octopus Investments Ltd. 10.6 M&G Investment Management Ltd. 8.7 Credit Suisse Securities Europe 7.9 Old Mutual Global Investors (UK) Ltd. 6.8 J.O. Hambro Capital Management Ltd. 5.8 Source: Bloomberg, FactSet and LSE Trading data, November 2013 15
    16. 16. Case Study: blur Group Transaction Details Company Details blur Group First Trading Day 5 Oct 2012 Market AIM Money raised at admission £4.0m Sector Software & Computer Services Market cap at admission £20.1m Ticker BLUR Current market cap £133.8m Company Country of incorporation UK NOMAD/Broker Further money raised N+1 Singer £7.6m Company profile Listing story  blur Group owns and operates the online Global Services Exchange at blurgroup.com where businesses buy, sell and pay for business services, including marketing, design, advertising and technology  blur Group joined the market in October 2012, the proceeds were predominantly used for technology development growth of their corporate sales teams 230 210 190 170 150 130 110 90 70 50 Blur group vs FSTE AIM All Share rebased at 100 Oct-12 Dec-12 blur Group Feb-13 Apr-13 Jun-13 FTSE AIM All Share Index Investor Name Value held in USD millions  In 2012 it received its 1,000th brief and now has over 20,000 experts from over 130 countries  Since IPO, the Company’s share enjoyed a significant increase in value over 90% 6.0 Octopus Investments Ltd. 1.8 Kames Capital Plc 1.5 Cheviot Asset Management Ltd. 1.4 Barclays Bank Plc (Private Banking) 0.8 Herald Investment Management Ltd. 0.7 Brewin Dolphin Ltd. KBL European Private Bankers Luxembourg SA Walker Crips Stockbrokers Ltd. 0.4 TD Direct Investing (Europe) Ltd.  Making use of cloud technologies and expert sourcing techniques, it started building expert crowds in 2007 and formally launched in 2010  On 31st May 2013, blur Group raised an additional £7.6m through an oversubscribed further offering Majedie Asset Management Ltd. 0.2 0.4 0.4 Source: FactSet and LSE Trading data, November 2013 16
    17. 17. Case Study: Retroscreen Virology Transaction Details Company Details Retroscreen Virology Admission Date Market AIM Money raised at admission Sector Pharmaceuticals & Biotechnology Company Trading system SETSqx Ticker RVG Country of incorporation UK Company profile  Retroscreen Virology is a virology healthcare business that provides clinical services  The company is focused on the Viral Challenge Model and pre-clinical analytical services primarily to large, global pharmaceutical companies and biotechnology organizations  Retroscreen Virology has developed a business system with two primary units. The first is a Clinical Services business built around Human Viral Challenge Model and the second is a Translational Research (Pre-Clinical) business, built around in-house expertise on testing antivirals and virucidals in-vitro 03 May 2012 450 400 350 £14m 300 250 Market cap at admission £32.8m Current Market cap £170.6m 200 150 100 50 Nominated Adviser and Broker Numis Securities ltd Listing story  Retroscreen Virology is a portfolio company of IP Group plc. IP Group and IP Venture Fund each committed £1.5million and £0.5 million to the placing  Retroscreen Virology was admitted to AIM in May 2012, and successfully raised £14m  The company plans to use the net proceeds of the placing to expand the VCM into adjacent and sizeable markets, for example asthma and COPD  Since admission to AIM, the company’s share price has been growing at a steady rate, reaching £3.06 in May 2013 0 May-12 Aug-12 Nov-12 Feb-13 RESTROSCREEN VIROLOGY plc Investor Name May-13 Aug-13 FTSE AIM All Share Value held in GBP millions Invesco Asset Management Ltd. 43.4 Ruffer LLP 9.4 Sand Aire Ltd. 8.1 Lansdowne Partners Ltd. 6.9 Henderson Global Investors Ltd. 6.5 Baillie Gifford & Co. Legal & General Investment Management Ltd. 4.3 0.8 Source: Factset, Bloomberg, September 2013 17
    18. 18. Case Study: Abcam Company Details Abcam Admission date: AIM Money raised at admission £15.3m Pharmaceuticals and Biotechnology Market cap at AIM admission £57.5m Trading System SETS Current Market cap £945m Ticker ABC 1400 03 Nov 2005 Market / Listing Category Sector Country of inc UK Company profile  Abcam plc is a producer and distributor of research-grade antibodies and associated products. Founded at the University of Cambridge in 1998, Abcam revolutionised the way in which antibodies are categorised and sold over the internet.  Abcam now employs over 400 people located in several offices globally, and has established itself as one of the leading suppliers of antibodies to research scientists Nomad (AIM) 1200 1000 Price Company 1600 Transaction Details 800 600 400 Numis Securities Ltd Listing story  Abcam was admitted to AIM in 2005 with a market capitalisation of £57.4m, and raised £15.3m.  Abcam has seen it grown into the largest biotechnology company on AIM and one of the largest companies with a current market of £945m  It’s performance has earned the company a number of industry awards including AIM company of the year 2009 at the Annual Growth Company Awards 200 0 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 ABCAM plc FTSE AIM All Share Investor Name BlackRock Investment Management (UK) Baillie Gifford & Co. Standard Life Investments Ltd. William Blair & Co. LLC Wasatch Advisors, Inc. T. Rowe Price Associates, Inc. Kames Capital Plc Newton Investment Management Ltd. Columbia Wanger Asset Management LLC Artemis Investment Management LLP Value held in GBP millions 74.0 71.7 56.9 45.9 30.8 30.5 25.6 23.6 19.3 16.4 Source: Factset, Bloomberg, September 2013 18
    19. 19. Case Study: EpiStem Holdings plc Company Details Transaction Details EpiStem Holdings Plc Admission Date 4 Apr 2007 Market AIM £1.8m Sector Pharmaceuticals & Biotechnology Money raised at admission Market cap at admission £7.4m EHP Current Market cap £45.5m UK Nominated Adviser and Broker Teather & Greenwood ltd Company Trading system Ticker Country of incorporation SETSqx 500 450 400 350 300 250 200 150 100 50 0 Apr-07 Apr-08 Apr-09 EPISTEM plc Company profile  EpiStem Holdings Plc joined AIM in April 2007 with an issue price of 1.24p, rising 12% in the first month.  The company has used the gross proceeds raised from the placing to finance further research and to fund the development of the Company’s diagnostic platform based on epithelial stem cell biology  The companies conducted further offerings in 2009, 2011 and 2012 raising in total £10m. Apr-11 Apr-12 Apr-13 FTSE AIM All Share Listing story  EpiStem Holdings Plc commercializes adult stem cells in the areas of oncology and gastrointestinal diseases as well as cosmeceutical applications.  EpiStem operates through three business divisions: Contract Research Services, Biomarkers and Novel Therapies. The Contract Research Services division provides preclinical efficacy testing primarily for drug development companies. The Biomarkers division engages in identifying the behaviour of epithelial cells and drug-induced gene expression change to measure drug effects during treatment. The Novel Therapies division develops innovative therapeutics to late preclinical stage development. Apr-10 Investor Name BlackRock Investment Management (UK) Odey Asset Management LLP Investec Asset Management Ltd. M&G Investment Management Ltd. Aerion Fund Management Ltd. Northern Trust Global Investments Ltd. J. M. Finn & Co. Ltd. Legal & General Investment Management Investec Wealth & Investment Ltd. Hargreave Hale Ltd. Value held in GBP millions 4.1 3.1 2.9 2.4 1.3 1.2 1.1 0.8 0.7 0.7 Source: Factset, Bloomberg, September 2013 19
    20. 20. Appendices
    21. 21. Understanding the different routes to market for commercial companies MAIN MARKET AIM Premium Standard High Growth Segment AIM Any Any EEA incorporated Any EU Regulated Market & Listed EU Regulated Market & Listed EU Regulated Market MTF 25% 25% 10% with a min value of £30m Assessment of suitability Revenue criteria 75% of business supported by revenue earning record of 3 years n/a 20% CAGR in revenues over 3 year period n/a Admission Prospectus & Eligibility letter to UKLA under Listing Rules Prospectus Eligibility letter to Exchange under HGS rules & Prospectus to UKLA AIM Admission Document & Nomad declaration of suitability Adviser Listing Sponsor at admission & for transactions n/a Description Domicile Regulation Minimum free float Corporate governance Ongoing obligations Significant transactions Cancellation Indices UK Corporate Governance Code Disclosure & Transparency Rules Class tests as per Listing Rules Corporate Governance statement Disclosure & Transparency Rules n/a 75% shareholder approval No shareholder approval required FTSE UK Series, where eligible n/a Key Adviser at admission & to seek advice for certain events Corporate Governance statement Disclosure & Transparency Rules Class tests as per HGS rulebook 75% shareholder approval, unless cancelling to transfer to Premium n/a Nominated Adviser at all times Expected market practice & guidance from Nomad AIM Rules Class tests as per AIM rules 75% shareholder approval FTSE AIM Series, where eligible 21
    22. 22. The AIM framework: admission & ongoing responsibilities Key eligibility requirements • Appointment of nominated adviser Eligibility criteria • No minimum track record requirement or free float criteria, but company must demonstrate appropriateness to join a public market • Pre-admission announcement at least 10 business days prior to admission Admission documents • AIM admission document Rulebooks • Nomad declaration of appropriateness • AIM Rules for Companies and Nominated Advisers • Adoption of corporate governance measures as appropriate for the business Corporate governance • UK Corporate Governance Code / QCA Corporate Governance Code as best practice Continuing obligations Adviser Periodic reporting Disclosure requirements • To retain a nominated adviser at all times, failure to do so may result in suspension in the company’s shares • Audited Annual Report • Half yearly financial report • Price sensitive information to be made public without delay • Significant shareholder notification • Directors’ dealings notification • Company website with up-to-date regulatory information • Class tests to assess transactions Corporate transactions • Notification of substantial transactions, related party transactions • Shareholder approval for reverse takeovers, fundamental disposals & cancellation 22
    23. 23. The AIM framework: understanding the role of the nominated adviser AIM companies are supported by a large and highly experienced community of advisers - nomads, brokers to accountants, lawyers, public relations and investor relations firms. The role of the nomad is the most critical as the AIM rules require every company to retain a nomad at all times. • A company can change its nomad firm as circumstances arise but must retain a nomad throughout its time on market Undertakes due diligence to determine whether the company and directors are suitable for AIM • Prepares the company for life on a public market and provides support in appointing team of advisers • Co-ordinates the preparation of the admission document which details the company’s investment proposition • Confirms to London Stock Exchange that the company is appropriate for AIM • Acts as the primary regulator throughout a company’s time on AIM by ensuring the company continues to understand its obligations under the AIM Rules • Gives corporate finance advice in relation to transactions whilst on AIM • Why is the nomad role important? It is important a company choses a nomad firm with relevant sector experience and understands the business. It is likely that the company will have a long and close relationship with their nomad • What does the nomad do? • • Who are nomads? An investment bank, a corporate finance or accountancy firm approved to act in the capacity of a nomad by London Stock Exchange To support and guide companies to achieve their growth potential • To help companies provide an assessment of their business and prospects for investors • A regulatory role to ensure a company meets its on-going obligations • To safeguard the integrity of the market. Strict criteria in place for becoming an approved nomad ensures companies have access to the high-quality advice they deserve 23
    24. 24. Indicative AIM IPO transaction timeline Week 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Test marketing Negotiation of agreements for the engagement of Nomad & broker, reporting accountant and registrars Review corporate structure with key advisers Financial due diligence & reports: long form report; financial information; working capital Drafting of AIM admission document Senior executive employment arrangements and terms of appointment of non-executive directors Negotiation of placing agreement Legal due diligence report produced and verified Pathfinder completion meeting Marketing Placing list finalised Placing proof prepared & Placing proceeds received by broker AIM pre-admission announcement Completion meeting Admission to AIM and dealings commence Proceeds of the placing paid to the company 24
    25. 25. Disclaimer This document has been compiled by the London Stock Exchange plc (the “Exchange”). The Exchange has attempted to ensure that the information in this document is accurate, however the information is provided “AS IS” and on an “AS AVAILABLE” basis and may not be accurate or up to date. The Exchange does not guarantee the accuracy, timeliness, completeness, performance or fitness for a particular purpose of the document or any of the information in it. The Exchange is not responsible for any third party content which is set out in this document. No responsibility is accepted by or on behalf of the Exchange for any errors, omissions, or inaccurate information in the document. No action should be taken or omitted to be taken in reliance upon information in this document. The Exchange accepts no liability for the results of any action taken on the basis of the information in this document. All implied warranties, including but not limited to the implied warranties of satisfactory quality, fitness for a particular purpose, non-infringement, compatibility, security and accuracy are excluded by the Exchange to the extent that they may be excluded as a matter of law. Further, the Exchange does not warrant that the document is error free or that any defects will be corrected. To the extent permitted by applicable law, the Exchange expressly disclaims all liability howsoever arising whether in contract, tort (or deceit) or otherwise (including, but not limited to, liability for any negligent act or omissions) to any person in respect of any claims or losses of any nature, arising directly or indirectly from: (i) anything done or the consequences of anything done or omitted to be done wholly or partly in reliance upon the whole or any part of the contents of this document; and (ii) the use of any data or materials in this document. Information in this document is not offered as advice on any particular matter and must not be treated as a substitute for specific advice. In particular information in the document does not constitute professional, financial or investment advice and must not be used as a basis for making investment decisions and is in no way intended, directly or indirectly, as an attempt to market or sell any type of financial instrument. Advice from a suitably qualified professional should always be sought in relation to any particular matter or circumstances. The contents of this document do not constitute an invitation to invest in shares of the Exchange, or constitute or form a part of any offer for the sale or subscription of, or any invitation to offer to buy or subscribe for, any securities or other financial instruments, nor should it or any part of it form the basis of, or be relied upon in any connection with any contract or commitment whatsoever. London Stock Exchange and the London Stock Exchange coat of arms device are registered trade marks of London Stock Exchange plc. Other logos, organisations and company names referred to may be the trade marks of their respective owners. © November 2013 London Stock Exchange plc 10 Paternoster Square London EC4M 7LS Telephone +44 (0)20 7797 1000 www.londonstockexchange.com