This slide deck takes a look at the reasons behind why you would float a company on the stock exchange, the different methods of flotation, the initial steps to flotation and then a further look in more detail at the AIM Stock Market. To learn more or book a free consultation visit our website http://www.hbcg.co.uk

1. SM
Floating a Company

2. Our Our credentials
 Senior Management from The London Stock Exchange
 Over 22 years combined experience of advising companies
about flotation on AIM and the UK stock markets
 Unparalleled city networks at the most senior levels including
all the UK Stock Markets
 Not business sector or size specific
 We work with companies who may be several months or
several years away from flotation
 Our clients include: companies, corporate advisors, banks,
universities, business support networks

3. Why float a company?
 To raise large amounts of investment finance, both at the time of
the float and by way of the further issue of shares once floated
 To create a wider market for the company’s shares - providing
an opportunity for existing shareholders to exit or part exit
 To increase your ability to make acquisitions, by using your
company’s shares as currency
 To raise your company’s profile and also the profile of your
products and services amongst customers and potential customers
 To encourage employee commitment by making share schemes
more attractive - helps to attract , retain and motivate key staff
 Increase the value of the company

4. SM
LONDON
THE PRIMARY FINANCIAL CENTRE
IN EUROPE
Europe’s deepest
pool of investment
capital
Wide range of
institutional
investment
Balanced and efficient
regulatory regime
Industry experts
specialist research
coverage
Choice of markets
(AIM, Main Market
ISDX)

5. Different methods of flotation
Placing
 The company broker offers the company’s shares to selected institutional investors
 Allows the company to raise capital at lower costs
 More flexibility as to how it is undertaken
 More discretion given to the company and its advisors as to who it’s investors are
 Can lead to a shallower shareholder base
 No private investors can lead to less liquid shares
Public Offer
 Company broker offers shares to private and institutional investors
 Usually the offer is underwritten
 Need for a prospectus
Introduction
 The company joins a market without raising capital
 No underwriting
 Admission document only, more cost effective than other options
 Limited opportunity to raise profile
 Used as a platform for future capital -raising

6. Initial steps to flotation
 Business plan which covers
– Strategy
– Markets
– Competition
– Financial projections
– Management team
 Take advice early
 Undertake a feasibility exercise first before deciding to
float

7. AIM
What is it ?
 The most successful growth market in the world
 Owned and operated by the London Stock Exchange
 Designed for UK & International high growth companies
 Over 2500 companies have joined since launch in 1995
 Access to investment capital
 Flexible regulatory approach
 Easy admission procedure (in theory)

8. AIM
Admission Rules
 No minimum size to be admitted
 No trading record required
 No minimum amount of shares to be in public hands
 In most cases, no prior shareholder approval required for
transactions
 Admission documents not pre-vetted by Exchange or
UKLA but by nominated advisor
 Nominated advisor appointed & required at all times
 Nominated broker appointed & retained at all times

9. AIM
Ongoing Obligations
 Retain a Nominated advisor (Nomad) at all times
 Retain a Nominated broker at all times
 Comply with the London Stock Exchange’s admission &
disclosure standards
 Timely release of price sensitive information
 Disclosure of information on the company website (rule 26)
 IFRS required

10. AIM
Benefits
 Flexible regulatory regime (encourages growth by acquisition)
 Non restrictive admission rules
 International market – International brand
 Further issues market very healthy
 Tax benefits
Drawbacks
 Costs
 Small companies can find it difficult to join (regardless of the no
minimum size admission rule)

11. Demystifying the costs
 Costs are broadly similar to other equity fundraising exercises
 Largest fees are contingent
 Due diligence is not contingent, but will focus on risk areas first
 Fees paid out of funds raised
 Should get realistic view of likelihood of success at the outset

12. HollandBendelow
Flotation consultants
London Office
Holland Bendelow
New Broad St House
35,New Broad Street
London
EC2M 1NH
Also in Leeds, Bristol & Cambridge
Tel: 0845 1223415
Web:www.hbcg.co.uk
Email: info@hbcg.co.uk