This is a sample of our (approximately) 3 page long Flotations notes, which we sell as part of the Public Companies and Equity Finance Notes collection, a Distinction package written at Multiple Institutions in 2013 that contains (approximately) 165 pages of notes across 52 different documents.
The original file is a 'Word (Docx)' whilst this sample is a 'PDF' representation of said file. This means that the formatting here may have errors. The original document you'll receive on purchase should have more polished formatting.
The following is a plain text extract of the PDF sample above, taken from our Public Companies and Equity Finance Notes. This text version has had its formatting removed so pay attention to its contents alone rather than its presentation. The version you download will have its original formatting intact and so will be much prettier to look at.
1. Flotations - Preparation for listing a. Advantages and disadvantages of listing Advantages
1. Access to capital to fund growth and or reduce debt
2. Providing a market
3. Public profile Disadvantages
1. Burden of disclosure and reporting requirements
2. Management time
3. Changes to the board
4. Cost and fees
5. Loss of Control b. AIM v Market Advantages of AIM
1. LR apply only to companies listed on the Official List and do NOT apply to companies on AIM
2. Besides DTR 5, DTRs DO NOT apply to Aim companies because AIM not a regulated market
3. AIM companies may find it easier to fall within exemption from requirements to produce full prospectus under the PR. (NB: if no exemption available for s 85(1) FSMA AIM company will still need to produce a full FCA approved prospectus)
4. AIM rules less onerous than LPDT Rules Advantages of Main Market
1. More money, more investors interested
2. Prestige, greater profile, greater publicity (of course flipside, muss more regulation and disclosure requirement).
3. Exposure to analyst coverage, investor confidence (and remember that the main investors are professionals so for them the work of analysts is very important.)
4. Access to LSE only main market.
5. Since main investors are institutional, they will tend to be roaming around on the main market, this is an advantage.
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