Presentation on theme: "Opportunities for Russian Companies On the London Stock Exchange & AIM."— Presentation transcript:
Opportunities for Russian Companies On the London Stock Exchange & AIM
March Main Reasons for Listing on the LSE Growth Independent Market Expertise Recommendations on how to maximise the value of joining a London market The Exchange: supports capital raising and generates liquidity supporting customers in maximising shareholder value Capital Raising it efficiently & effectively when required Profile Maximising marketing/PR opportunities Liquidity Increasing and maintaining liquidity
March Last 15 Months – Post IPO 13/02/07 27/02/07
March Assets Under Management in Major Western Financial Centres London is a global leader in asset management Source: Big Dough, Hemscott (January 2007) Other Assets ($tn) Equity Assets ($tn)
March Source: London Stock Exchange - January 2007 DR Trading on IOB In 2005, IOB total trading turnover was $131bn and in 2006 that number increased to $290bn, a 121% increase.
March To summarise… Why choose AIM? International profile World’s most successful growth market Balanced approach to regulation Professional investor base Cost effective
March Key AIM Statistics AIM: 1,635 UK: 1,331 International: 304 AIM Market Capitalisation: £94.4 bn AIM IPOs in 2006: 278 UK: 201 International : 77 Capital raised since 1995*: £40.1bn Capital raised in 2006*: £15.7bn UK: £10.3bn International: £5.4bn Source: London Stock Exchange trade statistics – March 2007 * New listings and further capital raises
March AIM Money Raised (£bn) Source: London Stock Exchange, March 2007 AIM is more than an IPO market, it provides companies with high quality long term institutional liquidity and the ability to raise further capital to fund future growth
March Size Distribution for Companies on AIM (# Companies) The average AIM company market cap is £60 million. The average AIM international market cap is £111.
March Top 10 AIM Sectors by Market Cap Source: London Stock Exchange trade statistics – March 2007 AIM is a diverse market spanning 39 sectors
March Admission Requirements No minimum size No trading record required No minimum number of shares in public hands No prior shareholder approval required for transactions* Admission documents pre-vetted by nominated adviser Nominated adviser required at all times AIM’s success is built on a balanced regulatory environment, designed to make the floatation process as smooth as possible * In most cases
March RankInstitutional InvestorsNo of InvestmentsValue of Investments (€m) 1CDS & Co104, Fidelity1601, Artemis Investment Management1301, New Star Asset Management AMVESCAP Merrill Lynch Cede & Co AXA Gartmore Schroders Goldman Sachs UBS CSFB Lansdowne Partners F & C Asset Management Liquidity & Institutional Investors on AIM Source : Growth Company Investor World’s largest institutional investors are all active participants on AIM.
March Oil exploration and production Listed on 05 April 2004 Market cap at admission - £2.5mln Market cap today - £788mln Share price has risen by 130% over the past 6 months Case Study 1 - Imperial Energy
March Case Study 2 - Aricom Plc Titanium Listed on 31 st December 2003 Market cap at admission - £14mln Market cap today - £304.48mln Share price has risen by 294% since 19 th December 2005
March Prospectus Preparation Underwriting & analytical coverage Broker NOMAD Company Short - form report Technology Experts Reporting Accountants Legal reports and negotiations Law Firm (NOMAD’s) Law Firm (Corporate) Public Relations and Investor Relations Listing and trading Services Stock Exchange: AIM Registrar PR firms Independent Researchers LHC £10k CREST Co Source: Oxford Said Business School MBA Project, August 2006 as amended by London Stock Exchange Cost structure for AIM listing The total cost of raising £50m ranges between £2.5-5m (5%-10% cost range) excluding value of options £ k plus 1% option 3-5% of the deal, plus 1% option £25k-£50k £100k- £150k £150k-£300k of which Nomad’s Lawyers get 25-40%