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 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:
2. The offer and application process
Methods of offer: offer for subscription, offer for sale and placing
There are two main types: retail and institutional offerings
Retail | Institutional | |
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Cost | More expensive as must appoint receiving bank to deal with share applications. Also more advertising required which adds to cost | Shares offerd through IB and broker directly to investors |
Timing | More marketing required and share application requests to be processed, so generally takes longer | Fewer investors usually identified prior to Launch |
Shareholder Liquidity | Results in larger shareholder base | Lower liquidity as shares held in hands of fewer SH |
Retail Offers
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Offer for subscription: “…subscribe for securities not yet in issue..” |
A. Company issues new shares as way of raising capital for company |
B. Shares offered to public in IPO: Investors subscribe for shares; and |
C. Company appoints receiving bank to accept applications from public and eal with payment for shares |
Offer for Sale: “…purchase securities of issuer already in issue or allotted…” |
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Institutional Offers
Placing: “…marketing of securities already in issue but not listed…” |
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Intermediaries: |
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When a prospectus is required
Prospectus
Also used to market issue to investors. Must contain all relevant info an investor would require in order to make an informed decision as to whether to invest in shares. It is required either by s. 85(1) FSMA or s. 85(2) FSMA and with no relevant exemptions applying.
Format of prospectus
PR 2.1.1-2.1.7 | The Summary |
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PR 2.2.1 | Can be single doc or separate doc |
PR 2.2.2 PR 2.2.3 | If separate, must divide the info into reg doc, sec note, and summary Reg doc + sec note + summary = valid prospectus |
PR 2.2.4 | If already have a reg doc approved by FCA must only draw up sec note and summary on admission to trading (see PR 5.1.4: Reg doc valid 12 months so long as updated) and be aware of PR 2.2.5 |
PR 2.2.6 | When requesting admission, can choose to file reg doc without approval. If do so, entire documentation including updated info, is subject to approval. |
PR 2.2.10 | Format of the prospectus, both if single document or separate documents. |
Contents of prospectus – specific and general disclosure obligations
s. 87A FSMA and PR 2.1.1 | General Obligation of disclosure |
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Articles 3 – 6 and 21 PD Reg Annexes I-III and XVIII as set out in PR App 3.1 | How to determine specific disc obligations |
Art 24 PD as set out in PR 2.1.4 and Annex XXII of PD REg as set out in PR 3.1 | Contents of Summary (use Annex XVIII as PRs not correctly shaded) |
PR 2.1.7R | Summary must also... |
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 upd...
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