SM

Floating a Company

Our Our credentials

Senior Management from The London Stock Exchange Over 22 years combined experience of advising companies

about flotation on AIM and the UK stock markets Unparalleled city networks at the most senior levels including

all the UK Stock Markets Not business sector or size specific We work with companies who may be several months or

several years away from flotation Our clients include: companies, corporate advisors, banks,

universities, business support networks

Why float a company?

To raise large amounts of investment finance, both at the time of the float and by way of the further issue of shares once floated

To create a wider market for the company’s shares - providing an opportunity for existing shareholders to exit or part exit

To increase your ability to make acquisitions, by using your company’s shares as currency

To raise your company’s profile and also the profile of your products and services amongst customers and potential customers

To encourage employee commitment by making share schemes more attractive - helps to attract , retain and motivate key staff

Increase the value of the company

SM

LONDONTHE PRIMARY FINANCIAL CENTRE

IN EUROPE

Europe’s deepest

pool of investment

capital

Wide range of

institutional

investment

Balanced and efficient

regulatory regime

Industry experts

specialist research

coverage

Choice of markets

(AIM, Main Market

ISDX)

Different methods of flotation

Placing The company broker offers the company’s shares to selected institutional investors Allows the company to raise capital at lower costs More flexibility as to how it is undertaken More discretion given to the company and its advisors as to who it’s investors are Can lead to a shallower shareholder base No private investors can lead to less liquid sharesPublic Offer Company broker offers shares to private and institutional investors Usually the offer is underwritten Need for a prospectusIntroduction The company joins a market without raising capital No underwriting Admission document only, more cost effective than other options Limited opportunity to raise profile Used as a platform for future capital -raising

Initial steps to flotation

Business plan which covers– Strategy– Markets – Competition– Financial projections– Management team

Take advice early Undertake a feasibility exercise first before deciding to

float

AIM

What is it ?

The most successful growth market in the world Owned and operated by the London Stock Exchange Designed for UK & International high growth companies Over 2500 companies have joined since launch in 1995 Access to investment capital Flexible regulatory approach Easy admission procedure (in theory)

AIM Admission Rules

No minimum size to be admitted No trading record required No minimum amount of shares to be in public hands In most cases, no prior shareholder approval required for

transactions Admission documents not pre-vetted by Exchange or

UKLA but by nominated advisor Nominated advisor appointed & required at all times Nominated broker appointed & retained at all times

AIM

Ongoing Obligations Retain a Nominated advisor (Nomad) at all times Retain a Nominated broker at all times Comply with the London Stock Exchange’s admission &

disclosure standards Timely release of price sensitive information Disclosure of information on the company website (rule 26) IFRS required

AIM

Benefits Flexible regulatory regime (encourages growth by

acquisition) Non restrictive admission rules International market – International brand Further issues market very healthy Tax benefits

Drawbacks Costs Small companies can find it difficult to join

(regardless of the no minimum size admission rule)

Demystifying the costs

Costs are broadly similar to other equity fundraising exercises

Largest fees are contingent Due diligence is not contingent, but will focus on risk areas

first Fees paid out of funds raised Should get realistic view of likelihood of success at the

outset

HollandBendelowFlotation consultants

London OfficeHolland BendelowNew Broad St House35,New Broad StreetLondonEC2M 1NH

Also in Leeds, Bristol & Cambridge

Tel: 0845 1223415Web:www.hbcg.co.ukEmail: info@hbcg.co.uk