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LPC Law Notes Public Companies and Equity Finance Notes

Methods Of Listing Crib Sheet Notes

Updated Methods Of Listing Crib Sheet Notes

Public Companies and Equity Finance Notes

Public Companies and Equity Finance

Approximately 165 pages

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 upd...

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

  1. Placing

    1. Defined in Appendix 1 of the Listing Rules

      1. 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 issuer’s securities generally

        1. Sponsor (NAME) markets issue to its own (institutional) clients

          1. DO FACTS SUGGEST ANY ARE INTERESTED IN INVESTING?

    2. Advantages

      1. Cheaper

      2. Discretion over who to place with as can pick to whom to sell the shares

        1. Institutional shareholders

          1. Ready source of additional finance

          2. Loyalty in the event of a hostile bid

          3. Easier to administer than a company with a very long shareholder list

        2. Retail shareholders

          1. Liquidity in the shares

          2. Enhanced public profile

          3. Brand awareness

      3. Raise lots of capital

    3. Disadvantages

      1. Institutional shareholders

        1. Reduced shareholder base

          1. Can impede trading as company less liquid

      2. Retail Shareholders

        1. Expensive to administer

  2. Public Offer

    1. Offer for subscription

      1. Company issues new shares

        1. Seller of shares is the company

    2. Offer for sale

      1. Existing shareholders offer their shares to new shareholders

        1. Exit mechanism common for private equity companies

        2. Seller of the shares is the shareholder

          1. ARE THERE SHAREHOLDERS WHO WISH OR NEED TO SELL?

            1. Are there 25% of shares in public hands?

              1. LR 6.1.19R(4)(a) shares held by other directors will not count towards the 25% level

    3. Advantages

      1. Can have a broad base of shareholders

        1. Increases liquidity of the company which facilitates the trading of shares on the market

        2. Offer for subscription raises capital

    4. Disadvantages

      1. Expensive

        1. Involves underwriting

        2. If company is not well known, costs of launching can be more expensive as will require marketing

          1. Appoint PR consultants to raise public awareness of the company and its products

      2. Offer for sale does not raise new capital


  1. Intermediaries

    1. Defined in Appendix 1 of the Listing Rules

      1. 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

    2. Shares are sold only to those within the definition of an intermediary

      1. An intermediary is defined by the FSA handbook

    3. Advantages

      1. Shares are known to be more liquid as there is a wider base of shareholders

    4. Disadvantage

      1. Very expensive so only suitable for very...

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