LPC Law Notes Public Companies and Equity Finance Notes
A collection of the best LPC Equity Finance notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through twenty-nine LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short these are what we believe to be the strongest set of Equity Finance notes available in the UK this year. This collection of notes is fully up...
The following is a more accessible plain text extract of the PDF sample above, taken from our Public Companies and Equity Finance Notes. Due to the challenges of extracting text from PDFs, it will have odd formatting:
Methods of Listing & Types of Offering
Placing
Defined in Appendix 1 of the Listing Rules
Marketing of securities already in issued but are not listed or not yet in issue, to specified persons or clients of the sponsor or any securities house assisting in the placing, which does not involve an offer to the public or to existing holders of the issuerβs securities generally
Sponsor (NAME) markets issue to its own (institutional) clients
DO FACTS SUGGEST ANY ARE INTERESTED IN INVESTING?
Advantages
Cheaper
Discretion over who to place with as can pick to whom to sell the shares
Institutional shareholders
Ready source of additional finance
Loyalty in the event of a hostile bid
Easier to administer than a company with a very long shareholder list
Retail shareholders
Liquidity in the shares
Enhanced public profile
Brand awareness
Raise lots of capital
Disadvantages
Institutional shareholders
Reduced shareholder base
Can impede trading as company less liquid
Retail Shareholders
Expensive to administer
Public Offer
Offer for subscription
Company issues new shares
Seller of shares is the company
Offer for sale
Existing shareholders offer their shares to new shareholders
Exit mechanism common for private equity companies
Seller of the shares is the shareholder
ARE THERE SHAREHOLDERS WHO WISH OR NEED TO SELL?
Are there 25% of shares in public hands?
LR 6.1.19R(4)(a) shares held by other directors will not count towards the 25% level
Advantages
Can have a broad base of shareholders
Increases liquidity of the company which facilitates the trading of shares on the market
Offer for subscription raises capital
Disadvantages
Expensive
Involves underwriting
If company is not well known, costs of launching can be more expensive as will require marketing
Appoint PR consultants to raise public awareness of the company and its products
Offer for sale does not raise new capital
Intermediaries
Defined in Appendix 1 of the Listing Rules
A marketing of securities already or not yet in issue, by means of an offer by, or on behalf of, the issuer to intermediaries for them to allocate to their own clients
Shares are sold only to those within the definition of an intermediary
An intermediary is defined by the FSA handbook
Advantages
Shares are known to be more liquid as there is a wider base of shareholders
Disadvantage
Very expensive so only suitable for very...
Buy the full version of these notes or essay plans and more in our Public Companies and Equity Finance Notes.
A collection of the best LPC Equity Finance notes the director of Oxbridge Notes (an Oxford law graduate) could find after combing through twenty-nine LPC samples from outstanding students with the highest results in England and carefully evaluating each on accuracy, formatting, logical structure, spelling/grammar, conciseness and "wow-factor".
In short these are what we believe to be the strongest set of Equity Finance notes available in the UK this year. This collection of notes is fully up...
Ask questions π Get answers π It's simple ποΈπποΈ
Our AI is educated by the highest scoring students across all subjects and schools. Join hundreds of your peers today.
Get Started