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Listing in the centre of global finance
Prepared for SETSquared
1 May 2014
1) Equity Markets Overview
3
Money
raised (IPO)
(GBPm)
Q1
2013
Q1
2014
%
change
Main Market 1,792 4,100 129%
AIM 34 1,283 3,674%
Total 1,826 5,383 19...
4
PE Backed IPO Market Returned in 2013…
Date Company name Sector
Private Equity
Sponsor
Mkt cap
at IPO
£m
IPO
size
£m
Sec...
Source: Bloomberg, Dealogic, April 2014
* Other Financial Sponsors include: SM Trust, Redpoint Ventures and Greylock Partn...
2) AIM
Start - Up Early Stage Expansion Consolidation &
further capital raising
Diversification of investors, M&A
and Internation...
0
2
4
6
8
10
12
14
16
18
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 20...
9
Technology companies on our markets
Market Cap profile of technology companies on our markets
ICB Sector AIM Main Market...
The benefits of the AIM network
Access
to
capital
Wide
support
network
Profile
Diverse & deep
pool of capital
Strong suppo...
Liquidity and investors
Number of companies in each index and market cap group
Market cap Range
FTSE AIM All
Share
FTSE Al...
Understanding the AIM admission process &
associated costs
Informal
discussions
& fact
finding
Appoint a
nominated
adviser...
The AIM framework: understanding the role of the
nominated adviser
Who are
nomads?
• An investment bank, a corporate finan...
The AIM framework: admission & ongoing
responsibilities
Key eligibility requirements
Eligibility criteria
• Appointment of...
Prepare ahead
Early Look
Investor
Engagement
 In an increasingly crowded primary market calendar, early preparation is cr...
3) Selected IPO Case Studies
Company Details
Company
Horizon Discovery
Group
Market AIM
Sector
Pharmaceuticals and
Biotechnology
Trading system SETSqx
...
Source: Bloomberg, FactSet and LSE Trading data, April 2014
*prices rebased to 100 as of 1st June 2012
Company profile
 W...
Company Details
Company Venture Life Group
Market AIM
Sector Food Producers
Trading System SETSqx
Country of
incorporation...
Case Study:
Blur Group plc
Company profile
 blur Group owns and operates the online
Global Services Exchange at blurgroup...
4) ELITE Programme Information
ELITE
A platform to facilitate long-term structured engagement between
the UK’s most ambitious growing businesses, industr...
The ELITE community
Advisers Investors
Imperial College
Business School
EntrepreneursIndustry experts
Influencers
London S...
Benefits of being a member
— Bespoke access to a network of the UK’s leading advisers, investors, experts, entrepreneurs
a...
Appendix
Access to capital
Liquidity
An exit route for earlier stage investors
Ability to incentivise key employees’ commitment
Sig...
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...
LSE Equity Primary Markets Team
Global Head of Primary Markets Alastair Walmsley +44 (0)20 7797 1597 awalmsley@lseg.com
Re...
Disclaimer
This document has been compiled by the London Stock Exchange plc (the “Exchange”). The Exchange has attempted t...
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Ignite your london stock exchange aim listing

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IGNITE your…. London Stock Exchange

Presenter – Lucy Tarleton, London Stock Exchange Director, responsible for London & the South of England, will be presenting on

“Aim - where ideas take off”

Aim is regarded by advisers, investors and companies as the most successful growth market in the world, having helped thousands of ambitious companies raise the capital they need to fund their growth and development. Lucy will provide an analysis of the benefits of flotation and the challenges companies will face on their journey to IPO, highlighting AIM's role in funding growth companies and its increasing importance for access to capital.

In her role, Lucy provides support and guidance to private companies who are considering floating as well as managing the London Stock Exchange’s relationship with over 850 Main Market and AIM quoted companies and the relationship with the corporate advisory community in the region.

Published in: Business, Economy & Finance
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Ignite your london stock exchange aim listing

  1. 1. Listing in the centre of global finance Prepared for SETSquared 1 May 2014
  2. 2. 1) Equity Markets Overview
  3. 3. 3 Money raised (IPO) (GBPm) Q1 2013 Q1 2014 % change Main Market 1,792 4,100 129% AIM 34 1,283 3,674% Total 1,826 5,383 195% Number of IPOs Q1 2013 Q1 2014 % change Main Market 8 14 75% AIM 6 17 183% Total 14 31 121% Source: Bloomberg and Dealogic, as of 31 March 2014 Primary markets in London remain very active 0 10 20 30 40 50 60 0 2 4 6 8 10 12 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 VFTSE DealvalueinGBPbn New issues VFTSE
  4. 4. 4 PE Backed IPO Market Returned in 2013… Date Company name Sector Private Equity Sponsor Mkt cap at IPO £m IPO size £m Secondary portion of Offering (%) Price Chg since IPO (%) 25-Mar-13 Countrywide plc Real Estate Alchemy, Oaktree, Apollo 706 212 2 75.9 27-Mar-13 esure Group plc Insurance Electra Partners, Penta Capital Partners 1,144 658 92 -12.3 02-Apr-13 HellermannTyton Group plc Electronic & Electrical Equipment Doughty Hanson 397 215 86 61.5 12-Jun-13 Partnership Assurance Group plc Insurance Cinven 1,473 534 74 -66.1 26-Jun-13 Al Noor Hospitals Group Healthcare Ithmar Capital 727 222 56 80.2 31-Jul-13 Conviviality Retail plc Retail ECI Partners 64 61 100 65.0 20-Sep-13 Foxtons Group plc Real Estate BC Partners 653 431 86 43.5 08-Oct-13 Arrow Global plc Financials RBS Asset Management 359 209 74 8.5 22-Oct-13 Stock Spirits Group Beverages Oaktree 475 261 80 24.3 8-Nov-13 Merlin Entertainment Leisure & Recreation Blackstone Group, CVC Partners 3,208 961 80 17.2 12-Nov-13 Just Retirement Group plc Insurance Permira 1,125 343 13 -28.0 15-Nov-13 Infinis Energy plc Energy Terra Firma Capital Partners 782 235 100 -15.5 20-Nov-13 Bonmarche Holdings Retail Sun Capital Partners 60 40 100 48.9 28-Nov-13 Eclectic Bars Dining & Leisure Avanti Capital 21 15 30 5.6 The Return of Private Equity issuance • 2013 saw a vibrant market for private equity-backed IPOs on the London market with 14 businesses successfully floating and raising a combined £4.4bn ($7.0bn) • Most of these have performed well in the secondary market, which has helped reinforce investor appetite for sponsor backed issuance and bodes well for other deals in the pipeline Source: Bloomberg, Dealogic, April 2014
  5. 5. Source: Bloomberg, Dealogic, April 2014 * Other Financial Sponsors include: SM Trust, Redpoint Ventures and Greylock Partners 5 …And Has Continued to Drive Volumes in 2014 Date Company name Sector Private Equity Sponsor(s) Mkt cap at IPO £m IPO size £m Secondary portion of Offering (%) Price Chg since IPO (%) 10-Feb-14 Manx Telecom Telecom HgCapital 163 159 87 14.5 25-Feb-14 McColl's Retail Group Retail Coller Capital, Caird Capital 333 138 63 -13.6 27-Feb-14 DX Group Logistics Arle Capital Partners 334 209 8 25.3 14-Mar-14 Gulf Marine Services Transportation Gulf Capital 473 179 60 11.9 28-Feb-14 Lenta Retail TPG, VTB 2,590 587 100 -6.0 17-Mar-14 Poundland Retail Warbug Pincus 1,252 391 100 17.7 17-Mar-14 Pets at Home Retail KKR 2,044 511 5 -9.0 28-Mar-14 Brit Insurance Insurance Apollo, CVC 1,689 290 91 -11.4 3-April-14 Just Eat Consumer Index Ventures Vitruvian Partners* 1,468 361 72 -9.5 11-Apr-14 Cambian Group Healthcare GI Partners 392 197 90 -2.9 11-Apr-14 Exova Group Professional Services Clayton Dubilier & Rice 556 223 50 0.6 11-Apr-14 Polypipe Chemicals Caird Capital 496 297 100 8.5 The London market continues to feature financial sponsored deals in 2014 • 2014 continues to see a favourable market for private equity-backed UK IPOs on the London market with 12 businesses successfully floating in the first quarter and raising a combined £1.7bn ($2.7bn) • Upcoming floats have been widely covered by the press, including, Saga, Travelex, Card Factory, and many others 2014YTD Money raised at IPO by deal type Financial sponsor- backed IPO 50% Non financial sponsor- backed IPO 50%
  6. 6. 2) AIM
  7. 7. Start - Up Early Stage Expansion Consolidation & further capital raising Diversification of investors, M&A and International Expansion EU Regulated Concept & seed stage Fundingrequirement £500k £1m £100k £50k £150m £1bn Not public Exchange regulatedMarket designation Strategic consideration Official List & EU Regulated A choice of routes to market, ultimately dependent on company's stage of development, size & strategy 7
  8. 8. 0 2 4 6 8 10 12 14 16 18 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Further New 123 145 107 75 102 277 177 160 162 355 519 462 284 114 36 102 90 71 99 26 0 100 200 300 400 500 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 UK Int'l 813 39 133136 173 214 150 122 80 1bn+500-1bn250-500m100-250m50-100m25-50m10-25m5-10m2-5m0-2m Profile of AIM companies Admissions to AIM – 1995 to March 2014 Fundraisings on AIM – 1995 to March 2014 Industries represented – by number of companies 1,094 companies, aggregate value of £78bn A snapshot of AIM Over 3,450 companies raising £38bn at admission £86bn in total (£48bn through further issues) Source: LSE statistics, March 2014 26 companies either suspended or undetermined value Oil & Gas, 132 Basic Materials, 179 Industrials, 191 Consumer Goods, 63Health Care, 68 Consumer Services, 110 Telecommunicati ons, 15 Utilities, 15 Financials, 210 Technology, 111 *ICB industry classification 8
  9. 9. 9 Technology companies on our markets Market Cap profile of technology companies on our markets ICB Sector AIM Main Market Electronic & Electrical Equipment 30 21 Fixed Line Telecommunications 6 18 Mobile Telecommunications 8 8 Software & Computer Services 91 25 Technology Hardware & Equipment 18 19 Other technologies* 20 6 Total Number of Companies 173 97 Total Market Cap (£bn) 15.7 625.3 • There are currently 270 tech** companies listed on our markets worth around £641bn • Recent IPOs have been from innovative, fast growing companies including: Rosslyn Data Technologies (£10m), boohoo.com (£300m), Manx Telecom (£156m), Tungsten Corp (£160m), Plus500 (£50m), CentralNic (£7m), Cambridge Cognition Holdings (£11m), Keywords (£28m), WANdisco (£15m), blur Group (£4m). • High Growth Segment: an additional route to LSE’s Main Market providing greater choice to growth businesses. On the 3rd April 2014, Just Eat became the first company to list on the HGS Source: London Stock Exchange statistics, April 2014 Figures in brackets refer to money raised at IPO * ’Other technologies’ includes the following additional ICB sectors: Chemicals, Equity Investment Instruments, Financial Services, General Retailers, Media, Support Services, Leisure Goods, Industrial Engineering, Household Goods & Home Construction, Travel & Leisure. **not including Healthcare Equipment & Services or Pharmaceuticals & Biotechnology ICB sectors £0-5m £5-10m £10-50m £50-100m £100-500m £500m-£1bn £1-5bn £5-10bn £10bn+ AIM 29 19 61 27 30 5 2 0 0 Main Market 3 1 4 7 22 15 31 4 10 0 10 20 30 40 50 60 70 No.ofcompanies
  10. 10. The benefits of the AIM network Access to capital Wide support network Profile Diverse & deep pool of capital Strong support from institutions Nominated advisers Accountants Lawyers Banks/Brokers Analysts Financial PR / IR Media Visibility Bargaining power with customers & suppliers Marketability of stock Global peer group 10
  11. 11. Liquidity and investors Number of companies in each index and market cap group Market cap Range FTSE AIM All Share FTSE All Small £0-25m 428 38 £25-100m 243 86 £100-500m 131 222 £500m+ 12 17 Total 814 363 AIM companies have comparable levels of daily liquidity to their Main Market peers Source: Data from Bloomberg and FactSet (6 month average daily value traded). Liquidity Analysis shows median within each market cap range. • AIM companies are supported by a deep pool of institutional capital, as well as an active retail investor base • There is a dedicated network of market professionals (brokers, research analysts, advisors) • The FTSE AIM 100 (which includes the 100 largest UK AIM companies) was the best performing UK index in 2013 *NB: The FTSE All-Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledging indices 90 95 100 105 110 115 120 125 130 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 FTSE 100 FTSE All Share FTSE AIM 100 FTSE AIM All Share 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 0.60% £0-25m £25-100m £100-500m £500m+ Avgdailyvaluetradedas% ofmarketcap FTSE AIM All Share FTSE All Small 11
  12. 12. Understanding the AIM admission process & associated costs Informal discussions & fact finding Appoint a nominated adviser Review of corporate structure, governance & Board Due diligence & drafting of admission document Investor discussions & placing agreements Placing finalised & completion meeting IPO THE START OF THE JOURNEY AIM pre-admission announcement (10 days prior to admission) Costs of IPO Advisory & due diligence These include nomad, reporting accountants, lawyers and other due diligence costs. They are mainly dependent on the 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 • Similar for comparable companies on AIM & the Main Market • Can vary dependent on complexity of the business 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 Fees may vary significantly depending on the size, complexity and sector of a company. 12
  13. 13. The AIM framework: understanding the role of the nominated adviser 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 • 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 • A company can change its nomad firm as circumstances arise but must retain a nomad throughout its time on market What does the nomad do? • 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? • 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 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. 13
  14. 14. The AIM framework: admission & ongoing responsibilities Key eligibility requirements Eligibility criteria • Appointment of nominated adviser • No minimum track record requirement or free float criteria, but company must demonstrate appropriateness to join a public market Admission documents • Pre-admission announcement at least 10 business days prior to admission • AIM admission document • Nomad declaration of appropriateness Rulebooks • AIM Rules for Companies and Nominated Advisers Corporate governance • Adoption of corporate governance measures as appropriate for the business • UK Corporate Governance Code / QCA Corporate Governance Code as best practice Continuing obligations Adviser • To retain a nominated adviser at all times, failure to do so may result in suspension in the company’s shares Periodic reporting • Audited Annual Report • Half yearly financial report Disclosure requirements • Price sensitive information to be made public without delay • Significant shareholder notification • Directors’ dealings notification • Company website with up-to-date regulatory information Corporate transactions • Class tests to assess transactions • Notification of substantial transactions, related party transactions • Shareholder approval for reverse takeovers, fundamental disposals & cancellation 14
  15. 15. Prepare ahead Early Look Investor Engagement  In an increasingly crowded primary market calendar, early preparation is critical  Very hard to accelerate an IPO process, so early preparation enhances ultimate timing flexibility  As activity increases, pressures / bottlenecks are likely to increase within advisory community – choosing the right advisers therefore increasingly important  Buyside fund managers have been vocal in the past about wanting to meet management teams ahead of an IPO  This practice of “early look” engagement with a number of the key investors has been very valuable:  Feedback for the Company and owners at an early stage on the business model, the management team and likely valuation parameters  Investors get an opportunity to build a rapport with management at this early stage, enhancing their likely participation at the IPO  Information at this stage can be carefully managed, such that management teams are not held to specific forecasts later at the time of the IPO Demand Patterns have Shifted  For UK IPOs in 2013, participation from US investors (who are significantly underweight Europe still) has typically totalled 30-50% of gross demand  Appetite from retail both directly (spill-over from Royal Mail effect) and through intermediaries has been strong and merits real consideration  Important to consider complementary distribution platforms in IPO syndicates to tap all of these pockets Appetite Broad Based  We have seen transactions this year across all sectors – quality businesses will be well received  Biotech has seen a notable uptick in issuance. Technology, pre-revenue, high growth and more traditional cash generating businesses have also found favour  Secondary components at IPO have been accepted,  Many investors believe they will have to get more selective as 2014 pipeline accelerates, but plenty of demand for high quality propositions Observation Comment Lessons Learned from Recent IPOs 15
  16. 16. 3) Selected IPO Case Studies
  17. 17. Company Details Company Horizon Discovery Group Market AIM Sector Pharmaceuticals and Biotechnology Trading system SETSqx Country of incorporation UK Transaction Details Admission date 27 Mar 2014 Money raised at admission £68.6m Market cap at admission £120.5m Current market cap £118.8m NOMAD and Broker Panmure Gordon Company profile  Horizon is a revenue-generating life science company supplying research tools to organisations engaged in genomics research and the development of personalised medicines.  The Group, which is Cambridge based, has a diverse and international customer base approaching 800 organisations, including major pharmaceutical, biotechnology and diagnostic companies as well as leading academic research centres totalling 353 unique customers in 2013.  Horizon’s main country of operation is the UK, with operations in the US and selling internationally. Listing story  The offering comprised £40m of primary capital and £28.6m secondary issuance at 180p per share  Horizon’s aim is to become a global market- leader in the provision of Life Science research tools that enable the understanding of the genetic basis of disease and the development of personalised medicines that deliver better outcomes for patients.  Proceeds from the IPO will be used to enhance the global profile of Horizon Discovery, expand its sales and distribution channels, boost its product lines and increase its geographic footprint and opportunities in leveraged R&D. Case Study: Horizon Discovery Source: FactSet, April 2014 17 Top 3 Institutional Investors Value held £m Legal & General Investment Management 9.5 Hargreave Hale 5.3 Henderson Global Investors 5.3 Key statistics Current market cap (£m) 118.8 Shares out (m) 66.93 Current free float 65.82% Institutional ownership 23.10%
  18. 18. Source: Bloomberg, FactSet and LSE Trading data, April 2014 *prices rebased to 100 as of 1st June 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 £1.9m in 2010 to £2.4m in 2011. 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.  In September 2013, WANdisco returned to the market with a £19m follow-on offer to fund further research and development. At the time of this further capital raise, WANdisco’s share price had increased 483% since IPO. Leading Investors Value held £m Cazenove Capital Management Ltd. 20.1 Legal & General Investment Management 10.0 BlackRock Investment Management (UK) 9.1 Octopus Investments Ltd. 4.9 Standard Life Investments Ltd. 4.3 Hargreave Hale Ltd. 3.8 Old Mutual Global Investors (UK) Ltd. 3.4 Artemis Investment Management LLP 3.3 M&G Investment Management Ltd. 3.0 Ecclesiastical Investment Management Ltd. 2.6 Company Details Company WANdisco plc Market AIM Sector Software & Computer Services Trading system SETSqx Ticker WAND Country of incorporation UK Transaction Details Admission date: 1 June 2012 Money raised at admission £15m Market cap at admission £35m Current Market cap £222m Nominated Adviser and Broker Panmure Gordon Case Study: WANdisco 18 0 100 200 300 400 500 600 700 800 900 Jun-2012 Nov-2012 Apr-2013 Sep-2013 Feb-2014 WANdisco vs FTSE AIM All Share* WANdisco FTSE AIM All Share
  19. 19. Company Details Company Venture Life Group Market AIM Sector Food Producers Trading System SETSqx Country of incorporation UK Transaction Details Admission date 28 Mar 2014 Money raised at admission £5.4m Current market cap £25.6m NOMAD Charles Stanley Securities Company profile  Venture Life is an international consumer healthcare company based in the UK, with topical development and manufacturing, focused on developing products for the ageing population.  The Group's product range includes food supplements for lowering cholesterol and improving brain function, dermo-cosmetics and cosmetics for addressing the signs of aesthetic ageing as well as medical devices for improving minor aches and pains and dry eyes.  Venture Life Group was founded by Sharon Collins and Jeremy Randall and is headquartered in the UK Listing story  The fundraising and admission to AIM allowed Venture Life to complete the acquisition of the Italian company, Biokosmes.  Venture Life is aiming to take advantage of the increasing demand for healthcare products and food supplements for the ageing population.  The Group will seek to generate growth through expanding distribution and sales of its current on-market products, the development and commercialisation of new products and formulations addressing unmet needs and penetration into the Chinese and Far East markets. Case Study: Venture Life Source: FactSet, March 2014 19 Top Institutional Investors Value held £m Aviva Investors Global Services 2.56 Quilter Cheviot 1.96 Key statistics Current market cap (£m) 25.6 Shares out (m) 24.26 Current free float 52.40% Institutional ownership 17.64%
  20. 20. Case Study: Blur Group plc Company profile  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  Making use of cloud technologies and expert sourcing techniques, it started building expert crowds in 2007 and formally launched in 2010  In 2012 it received its 1,000th brief and now has over 20,000 experts from over 130 countries Listing story  On 31st May 2013, blur Group raised an additional £7.2m through an oversubscribed further offering  Since IPO, the company’s market capitalization increase almost 6 times its offer value.  In 2013, blur Group won Shares Magazine Best LSE AIM Company Achievement  Although the group earns almost half of its revenues in dollars, Philip Letts, chief executive and founder, said “Blur was not tempted by a US listing and only had eyes for AIM. Our ambition has always been to build a UK global technology success story and the initial public offering is a key part in helping us to achieve that goal.” Source: FactSet, February 2014 20 Company Details Company blur Group Market AIM Sector Software & Computer Services Ticker BLUR Country of incorporation UK Transaction Details First Trading Day 5 Oct 2012 Money raised at admission £4.1m Market cap at admission £20.4m Current market cap £136.3m NOMAD/Broker Singer Capital Further money raised £7.2m Investor Name Value held in GBP millions Majedie Asset Management Ltd. 12.3 Investec Asset Management Ltd. 11.6 Quilter Cheviot Ltd. 3.9 Octopus Investments Ltd. 3.8 Kames Capital Plc 3.7 Barclays Bank Plc (Private Banking) 2.6 J.O. Hambro Capital Management Ltd. 1.6 Allianz Global Investors Europe GmbH 1.5 TD Direct Investing (Europe) Ltd. 1.3 Ignis Investment Services Ltd. 1.2 0 100 200 300 400 500 600 700 800 900 1000 Oct-2012 Jan-2013 Apr-2013 Jul-2013 Oct-2013 Jan-2014 blur vs FTSE AIM All Share blur Group FTSE AIM All Share
  21. 21. 4) ELITE Programme Information
  22. 22. ELITE A platform to facilitate long-term structured engagement between the UK’s most ambitious growing businesses, industry experts and the corporate advisory and investor community, helping them prepare and structure for external investment and the next stage of growth. Delivered in partnership with Imperial College Business School, ELITE will enhance the growth prospects of member companies through a unique three-part package of education, business support, coaching and access to investors and business leaders. Get Ready A comprehensive program for founders and managers, delivered with Imperial College Business School and external experts, to stimulate organisational review and change. Get Fit Reflection on company-specific issues and planning for change with the support of a dedicated external advisory team. Get Value Capitalise on the benefits of the first two phases to access new business opportunities and funding options. 22
  23. 23. The ELITE community Advisers Investors Imperial College Business School EntrepreneursIndustry experts Influencers London Stock Exchange Public companies ELITE company 23
  24. 24. Benefits of being a member — Bespoke access to a network of the UK’s leading advisers, investors, experts, entrepreneurs and public companies — Earlier engagement with the investor community helping to access capital from a range of sources as and when appropriate for your business — Become part of a vibrant ecosystem that supports and promotes innovation, entrepreneurialism and growth — Develop the expertise to help make informed business and funding decisions for your company — A platform to enhance your business profile with stakeholders, supported by an extensive media campaign and web portal — Opportunity to interact, share experiences and learn from other companies with similar growth objectives and aspirations. 24
  25. 25. Appendix
  26. 26. Access to capital Liquidity An exit route for earlier stage investors Ability to incentivise key employees’ commitment Significantly enhance profile & visibility, particularly with customers & suppliers Currency to fund business acquisitions & expand into new markets Greater operational and governance discipline Why join the public equity market? What our companies tell us… 26
  27. 27. 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 27
  28. 28. LSE Equity Primary Markets Team Global Head of Primary Markets Alastair Walmsley +44 (0)20 7797 1597 awalmsley@lseg.com Relationship Management Region Relationship Manager Telephone Email UK Marcus Stuttard Tom Attenborough Lucy Tarleton Mark Fahy Chris Mayo + 44 20 7797 3364 + 44 20 7797 3747 + 44 20 7797 4672 + 44 20 7797 6396 + 44 20 7797 3134 mstuttard@lseg.com tattenborough@lseg.com ltarleton@lseg.com mfahy@lseg.com cmayo@lseg.com Russia, CIS, Asia – Pacific Jon Edwards (London) Ayuna Nechaeva (London) Maksim Kondratjuks Julia Wang (Beijing) Yi Xie (HK) +44 20 7797 1599 +44 20 7797 4386 +44 20 7797 4305 +86 10 5833 2201 +852 3555 6395 jedwards@lseg.com anechaeva@lseg.com mkondratjuks@lseg.com jwang@lseg.com yxie@lseg.com India, Middle East, Africa Ibukun Adebayo +44 20 7797 1085 iadebayo@lseg.com Americas Alexander Lehmann (New York) +1 917 863 9100 alehmann@lseg.com Continental Europe Luca Peyrano (Milan) Axel Kalinowski +39 0 272 426291 +44 20 7797 4108 lpeyrano@lseg.com akalinowski@lseg.com Product management and development Product Manager Telephone Email Main Market, AIM, PSM, SFM, ELITE and ATT Only Joanne Dutton Darko Hajdukovic Umerah Akram Marcello Sathya Cassanelli Luca Broglio Emma Titmus David Smith +44 20 7797 3622 +44 20 7797 3306 +44 20 7797 4707 +44 20 7797 3965 +44 20 7797 4274 +44 20 7797 1464 +44 20 7797 1459 jdutton@lseg.com dhajdukovic@lseg.com uakram@lseg.com mcassanelli@lseg.com lbroglio@lseg.com etitmus@lseg.com d.smith@lseg.com For further information refer to www.lseg.com 28
  29. 29. 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. © May 2014 London Stock Exchange plc 10 Paternoster Square London EC4M 7LS Telephone +44 (0)20 7797 1000 www.londonstockexchange.com

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