1. Listing on London Stock Exchange
DICKSON CONSULTING
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Listing on London Stock Exchange
AIM Market
5/26/2019
Dickson Consulting

2. Table Of Contents Overview of AIM
Factors in Accessing Company Suitability
Pros and Cons of AIM
Examples of Benefits
Examples of Risks
Examples of Key Issues
Targeted Shareholders
Sample Timetable
Professional Advisors
Role of Nomad
Role of Broker
AIM vs. NASDAQ
5/26/2019
Dickson Consulting

3. Overview of AIM
“Small company” stock exchange portion of London Stock Exchange
Platform for higher risk investments
Since ,200 AIM companies have used AIM to go public
Total market value of $71.6 billion-pounds
Largest market cap company-$1.6 billion- pounds
Number of companies in market value range of $100 to $250 million pounds-131
Since 1995, 250 international companies
5/26/2019
Dickson Consulting

4. Factors in Assessing Company Suitability
Management team
Capability
Integrity
Viable business model
Growth
Deliver value to shareholders
Valuation acceptable to all parties
The expectation is that at least $10 million (USD) will be raised, with market cap of $20 million minimum.
Corporate governance
5/26/2019
Dickson Consulting

5. Pros and Cons of AIM Pros of AIM
Less regulatory structure compared to U.S.
Fewer rules and costs
Access to capital
Market value of company more readily established
New investors
Market for stock
Public profile
Cons Of AIM
Key decision of officers and board members have increased visibility
Uncertainty of market conditions and other factors could impact share price
Communication with investors (roadshow)
5/26/2019
Dickson Consulting

6. Examples of Benefits Additional cash for more rapid growth
Exit strategy for existing shareholders
Publicly traded market
Increased visibility/communication
Entry or Reentry into European market with product
Employee morale resulting from benefits of share ownership
5/26/2019
Dickson Consulting

7. Examples of Risks Product not viewed as unique/competitive
Small company viewed as one product company
Product development not far enough along
Infrastructure not adequate for public company
Expense of being a public company
Time required
5/26/2019
Dickson Consulting

8. Examples of Key Issues
Is this the most appropriate strategic alternative?
Existing shareholders sale at time of IPO?
Reaction to dilution?
Market price at time of initial offering?
Market price after initial offering?
Infrastructure to support public company?
Time required for CEO/CFO?
5/26/2019
Dickson Consulting

9. Targeted Shareholders
Venture capital trusts listed on the LSE
Firms that specialize in investing in AIM market
High net worth individuals/retail investors
Larger financial institutions. Examples:
Merrill Lynch
Fidelity
Goldman Sachs
5/26/2019
Dickson Consulting

10. Sample Timetable LSE course on AIM market Appoint advisors
Draft prospectus
IR strategy
PR presentation
Complete due diligence
Analyst presentations
Complete financials
Marketing
Book closes
Impact day
Placing completion*
Trading commences
Certificates issued
*Complete documents, pricing and allocation,
register prospectus, sign subscription
agreement, print final prospectus
9/19 or 10/10
December 1
January 1
February 1
February 2-March 15
February 28
March 19- March 28
April 2
April 3
April 7
April 9
April 16
Front end of process=Selling
Backend of process=Legal
5/26/2019
Dickson Consulting

11. Professional Advisors
Accounting firm
Law firm
Nominated Advisor (“Nomad”)
Broker (may be same firm as Nomad)
Public/investor relations
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Dickson Consulting

12. Role of Nominated Advisor (“Nomad”)
Access whether company is appropriate for market
Explain the AIM rules to company’s board and ensure that the directors are aware of their responsibilities and obligations
Project management of the process
Help pull together admission documents
Provide ongoing advice and guidance on the AIM rules once company has been admitted
5/26/2019
Dickson Consulting

13. Role of Broker Gauging interest and advising on pricing
Bringing buyers and sellers of company’s shares together (marketing and book building)
Preparing and accompanying company on the roadshow
Trading in the secondary market
Provide research
5/26/2019
Dickson Consulting

14. AIM vs. NASDAQ Favor NASDAQ U.S. based market
Communications easier with U.S. shareholders
Average capitalization
$1.2 billion
Favor AIM
U.S. regulatory requirements (Sarbanes-Oxley)
No minimum stock price (NASDAQ delisting if below $1 per share)
Legal scrutiny over communications
Average capitalization $70 million
5/26/2019
Dickson Consulting