Listing on the London Stock Exchange
What is the Main Market?
The Main Market is the Exchange's principal market for listed companies from the UK and overseas. Offering the widest investor base it tends to attract larger companies. It currently includes approximately 2,000 UK companies and 500 overseas companies.
What is AIM?
AIM (Alternative Investment Market) gives companies from all countries and sectors access to the market at an earlier stage of their development by combining the benefits of a public quotation with a more flexible regulatory approach.
What are the main differences in the admission criteria for the Main Market and AIM?
The highlights of the main differences in the admission criteria for the Main Market and AIM:
How can international companies list on the London Stock Exchange?
International companies can list a number of products in London – including shares, depositary receipts and debt, offering different and cost-effective ways to raise capital.
Can a company list securities in Euros?
Yes, in fact companies can choose to have stock traded in over 20 global currencies including Euros, US Dollars and Yen.
What are the 'Main Market Admission and Disclosure standards'?
The Exchange's own rules for companies joining our markets. Companies admitted to, or considering flotation on the Main Market also need to comply with the UK Listing Authority's (UKLA) Listing Rules. The UKLA's Listing Rules are available from the Financial Services Authority by calling +44 (0) 20 7943 0333.
How long does the flotation process take?
On average the process takes about seven months, but many companies start preparing for flotation two-to-three years in advance.
What should I ask potential advisers?
Possible questions might include:
What recent deals have you worked on?
How much will it cost to float?
What range of valuations can you expect?
Which market is most appropriate for the company?
How much does it cost to float a company?
It varies greatly. 10% of money raised is a good rule of thumb.
Where can I get a list of North West companies traded on the Exchange?
landMARK north west brings together over 120 companies from the region which are traded on either the main market or AIM. All of these companies are grouped together below.
What are the benefits of joining AIM?
AIM gives companies from all countries and sectors access to the market at an earlier stage of their development, allowing more businesses to experience life as a public company.
Where can I find a list of AIM companies and their nominated advisers?
The London Stock Exchange maintains a list of approved Nominated Advisers.
Where do I find the AIM Rules on the Exchange's web site?
You can view or download the latest AIM rulebook and any recent updates from the Company Resources section of this site. There's also full information on the fast-track admission route – AIM Designated Markets, disciplinary and appeals procedures and fees.
What is techMARKTM?
techMARKTM is a grouping of innovative technology companies listed on the Main Market.
As a listed company how can I apply to join techMARK?
techMARKTM is open to all innovative technology companies who issue shares or retail certificates representing shares, irrespective of their size, industrial classification or location.
Do techMARK companies need a three year track record?
No, there are exemptions from the UK Listing Authority's requirement for a three-year track record for two specific groups of companies:
For innovative high growth companies as defined under the UKLA's Listing Rules with a Market Capitalisation of at least £50m selling shares worth at least £20m on admission, these companies will have to produce quarterly reports and; for scientific research-based companies as defined under the UK Listing Authority's Listing Rules with a market capitalisation of at least £20m, raising at least £10m on admission and able to demonstrate that they have achieved significant commercial milestones.
What is techMARK mediscience?
techMARK mediscienceTM is a specialist grouping within the Main Market specifically developed to put the global investment community in touch with companies in the dynamic healthcare sector.
How does techMARK mediscienceTM relate to techMARK?
techMARK mediscienceTM is our market for international healthcare companies. techMARK mediscienceTM companies have to meet the techMARK eligibility criteria before they can join. In addition, techMARK mediscienceTM companies must be constituents of, or eligible for, the FTSE pharmaceutical and FTSE medical equipment and supplies sub sectors.
How is a company admitted to techMARK mediscienceTM?
By becoming a techMARK company, and by being a member of the FTSE Pharmaceuticals sector or the FTSE Medical Equipment and Supplies sub-sector.
What are the techMARK indices?
The FTSE™ techMARK™ All-share Index includes all the techMARK companies from across the main market. The FTSE™ techMARK™ 100 Index focuses on medium and smaller techMARK companies. It excludes the largest companies and includes the 100 primary-listed companies that had a market capitalisation below £4bn at the launch of techMARK. And, The FTSE techMARK mediscience Index for emerging healthcare companies in the early stages of growth, so FTSE 100 companies are not included
Where can I find a list of techMARK mediscience companies?
All companies are represented in the FTSE techMARK mediscience index.
What is a rights issue?
In a rights issue, a company which has already listed invites existing shareholders to buy additional new shares in the company for a set price. Shareholders can either 'take up' their rights or 'pass' them.
How does the Exchange assist companies with their investor relations activity?
Investor Relations is one of the most important disciplines for a listed company. At the Exchange we offer a range of products and services to companies looking to develop an Investor Relations strategy.
What are institutions and other investors looking for?
Controlled growth: companies that deliver what they forecast; management teams with a good track record and relevant skills. Above all, a board must be seen to be in control - to have the ability to drive the business forward and the vision to grow.
Can you pay the fees out of the money raised?
Yes – this is normal practice.
What is the minimum market value?
There is no minimum market value requirement. However if a company is admitted via chapter 25 of the UK Listing Authority rule book then the minimum market value is £50m.
What is corporate governance?
Corporate governance is the way a company conducts itself and structures its senior management.
What is a P/E ratio?
The 'price/earnings ratio' is a measurement of a company's rating. It is calculated by dividing the share price by the annual earnings per share. A high P/E ratio means the company is highly-rated by the stock market, suggesting that investors think its prospects are good.
What is price-sensitive information?
Any information that could lead to substantial movement in the price of a company's shares. Companies have an obligation to notify the market of any such information.
What is liquidity?
Liquidity is a measure of the tradability of a company's shares.
Where can I find further information about the indices?
The index ground rules are available from FTSE web site
Can listed companies use the Exchange broadcasting facilities to communicate to its shareholders?
The Media Centre, at the London Stock Exchange, combines the latest media and presentation technology to offer companies the ultimate corporate event venue. Available to hire for company results' presentations and product launches, the Media Centre provides a convenient location for director's TV and radio interviews associated with your event or announcement.
Where can I find a company share price graph and detailed company information?
landMARK is our market for quoted regional companies and is dedicated to highlighting their potential in every area of the UK and Ireland. You can also find full details about international companies listed on our markets.
Itemised Trading Charges
What is ITC?Itemised Trading Charges (ITC) provides members with a full breakdown of their trading charges. Through this value-added service, members gain online access to information on their previous day’s trading activity. For more information existing members should contact their dedicated account manager. Firms who are interested in becoming a member should contact the Membership team on 020 7797 3360.
Source: http://www.londonstockexchange.com/en-gb/Global/F/faqs
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