Opportunities for Russian Companies On the London Stock Exchange & AIM - PowerPoint PPT Presentation

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Opportunities for Russian Companies On the London Stock Exchange & AIM

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  1. Opportunities for Russian Companies On the London Stock Exchange & AIM

  2. Liquidity Increasing and maintaining liquidity Main Reasons for Listing on the LSE Profile Maximising marketing/PR opportunities Capital Raising it efficiently & effectively when required 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

  3. Last 15 Months – Post IPO 27/02/07 13/02/07 13/02/07

  4. Assets Under Management in Major Western Financial Centres 12.7 10.6 Other Assets ($tn) Equity Assets ($tn) 5.2 3.7 3.2 2.8 1.6 1.5 1.4 London is a global leader in asset management Source: Big Dough, Hemscott (January 2007)

  5. DR Trading on IOB In 2005, IOB total trading turnover was $131bn and in 2006 that number increased to $290bn, a 121% increase. Source: London Stock Exchange - January 2007

  6. World’s most successful growth market International profile To summarise… Why choose AIM? Balanced approach to regulation Professional investor base Cost effective

  7. 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 Key AIM Statistics * New listings and further capital raises Source: London Stock Exchange trade statistics – March 2007

  8. AIM Money Raised (£bn) 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 Source: London Stock Exchange, March 2007

  9. Size Distribution for Companies on AIM(# Companies) The average AIM company market cap is £60 million. The average AIM international market cap is £111.

  10. Top 10 AIM Sectors by Market Cap AIM is a diverse market spanning 39 sectors Source: London Stock Exchange trade statistics – March 2007

  11. 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

  12. Liquidity & Institutional Investors on AIM World’s largest institutional investors are all active participants on AIM. Source : Growth Company Investor

  13. Case Study 1 - Imperial Energy • 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

  14. Case Study 2 - Aricom Plc • Titanium • Listed on 31st December 2003 • Market cap at admission - £14mln • Market cap today - £304.48mln • Share price has risen by 294% since 19th December 2005

  15. Cost structure for AIM listing Legal reports and negotiations Law Firm Law Firm ( NOMAD’s ) (Corporate) £150k-£300kof which Nomad’s Lawyers get 25-40% Prospectus Short - form Preparation £150-200kplus 1% option report NOMAD Reporting Company Accountants Underwriting & £100k-£150k 3-5% of the deal, plus 1% option analytical coverage Technology Experts Broker £25k-£50k £10k Listing and trading Services Public Relations and Investor Relations Stock Exchange: AIM Independent PR firms Researchers LHC CREST Co Registrar The total cost of raising £50m ranges between £2.5-5m (5%-10% cost range) excluding value of options Source: Oxford Said Business School MBA Project, August 2006 as amended by London Stock Exchange

  16. Contact Details Jon Edwards Senior Manager, CIS & CEE +44 (0) 20 7797 1599 jedwards@londonstockexchange.com Zarina Korolova Manager, CIS & CEE +44 (0) 20 7797 4472 zkorolova@londonstockexchange.com www.londonstockexchange.com/aim