Supporting the growth of
small and mid cap companies
London Stock Exchange - key statistics
Total companies
Domestic: 2,581
International: 578
Market capitalisation
UK listed: US$3,398bn
International listed: US$4,243bn
AIM: US$142bn
Equity turnover (Jan-Dec 2005)
Main Market:
Domestic: US$4,361bn
International: US$4,770bn
GDRs: US$131bn
AIM: US$75bn
Source: London Stock Exchange statistics – April 2006
2
The Exchange of choice for international
companies
Total number of IPOs on the London Stock Exchange, Nasdaq
and NYSE - 2000 to 2005
T otal N o o f IPO s
450
London Stock Exchange
400
Nasdaq
350
NYSE
300
250
200
150
100
50
0
2000
Source: London Stock Exchange and
individual exchange websites
2001
2002
2003
3
2004
2005
A leader in international assets under
management
International equity investments
(US$M)
800,000
700,000
US$M
600,000
500,000
400,000
300,000
200,000
100,000
0
London
Boston
New York
Frankfurt
Los
Angeles
Hong
Kong
London is the world’s most internationally focussed financial centre
Source: IR Channel – Feb 2005
4
London Stock Exchange
The world’s most successful growth market
5
AIM – key statistics
¾ AIM companies: 1,501
¾ Overseas AIM companies: 252
AIM
Key statistics
¾ IPOs on AIM in 2005: 335
¾
259 UK
¾
76 overseas
¾ Capital raised (new & further) since 1995: US$52bn
¾ Capital raised (new & further) in 2005: US$16bn
¾ US$ 12bn UK companies
¾ US$ 4bn overseas companies
Source: London Stock Exchange trade statistics – April 2006
6
AIM – critical mass to support growth
Number of AIM Admissions 1995 to YT D 2006
600
519
ADMISSIONS
500
400
355
277
300
177
200
123
145
107
100
75
160
162
2002
2003
158
102
0
1995
1996
1997
1998
1999
2000
2001
YEAR
Source: London Stock Exchange statistics – April 2006
7
2004
2005
2006 to
A pril
The widest choice of proven global markets
A choice of globally respected markets supported
by a wide range of institutional & retail investors
Main Market
Supports more established
companies seeking further growth.
1,658 issuers
Supports earlier stage companies in
their initial growth period.
1,501 issuers
UK Listing Authority
Nominated Adviser (Nomad)
Sponsor
8
Flexible regulation
Admission Rules
¾ Regulated by the London Stock Exchange, giving a more flexible
regulatory environment
¾ No trading record required
¾ No minimum amount of shares to be in public hands
¾ In most cases, no prior shareholder approval required for
transactions
¾ Admission documents not pre-vetted by Exchange or UKLA but by
nominated adviser
¾ Nominated adviser required at all times
9
Continuing obligations
AIM companies are subject to the AIM Rules which outline the continuing obligations of being on
a public market. Some of the key continuing obligations are:
AIM companies must have a Nomad at all times, otherwise they will be suspended
from the market
AIM companies must disclose all price sensitive information in a timely manner
including substantial transactions, related party transaction, reverse takeovers and
other miscellaneous transactions
Half yearly and annual report and accounts required in adherence with deadlines
All directors accept full responsibility, collectively and individually for the AIM Rules
Restrictions on deals for directors and applicable employees on AIM securities
during close periods
UK Corporate Governance standards
10
A market for companies of all sizes
Distribution of AIM companies by market value
April 2005 vs April 2006
400
No of companies April 2006
350
No of companies
No of companies April 2005
300
250
200
150
100
50
0
less than
$3.5m
$3.5m to
$8.8m
$8.8m to
$17.5m
$17.6m to
$44m
$44m to
$88m
M arke t Value ($)
Source: London Stock Exchange trade statistics – April 2006
11
$88m to
$176m
$175m to
$440m
more than
$440m
A diverse market
Top 10 AIM sectors by market capitalization and no of companies
for April 2006
Market Capitalisation ($m)
250
No. of Companies
10,000
200
8,000
150
6,000
100
4,000
50
2,000
Source: London Stock Exchange trade statistics – April 2006
12
Real Estate
General
Retailers
Pharmaceuticals
& Biotechnology
Media &
Entertainment
Software &
Computer
Services
Leisure & Hotels
Support
Services
Speciality &
Other Finance
Mining
0
Oil & Gas
0
No of companies
Market capitalization ($m)
12,000
Institutional investors understand
All of the main UK institutions invest in AIM.
Institutional investors account for approximately 40% of the market
Rank
1
2
3
4
5
6
7
Most active Institutions by value of
investment
Fidelity
Artemis
Schroder Investment mgt
Foreign & Colonial
Merrill Lynch
UBS
Framlington
8
9
10
11
12
13
14
15
Invesco
Goldman Sachs
RAB Capital
Gartmore
Tiger Resource Finance
Jupiter Asset Management
Lansdowne
Aviva
Source: London Stock Exchange trade statistics – December 2005
No of Investments
13
Value of Investments (£m)
113
94
45
112
46
38
56
692.81
451.33
340.44
300.03
244.49
226.29
222.08
51
46
58
65
3
44
20
39
221.47
208.73
205.02
196.04
187.61
180.58
167.53
162.26
International trading
AIM turnover: value traded and total number of bargains
April 2005 / April 2006
400
Number of bargains
12,000
Value traded ($m)
10,000
300
8,000
250
6,000
200
150
4,000
100
2,000
50
-
Apr-05
Jun-05
Aug-05
Oct-05
Date
Source: London Stock Exchange trade statistics – April 2006
14
Dec-05
Feb-06
Apr-06
Value traded ($m)
Number of bargains '000
350
A thriving secondary market
Indices comparison: FTSE AIM and International indices
(Last 24 months)
Index value (rebased 31/12/2003)
2,100
FTSE AIM 100
1,900
S&P 600
Russell 2000
1,700
Tech DAX All-Share
FTSE AIM UK 50
1,500
1,300
1,100
900
700
Dec-03
Feb-04
Apr-04
Jun-04
Aug-04
Oct-04
Dec-04
Source: Thomson Financial Datastream
15
Feb-05
Apr-05
Jun-05
Aug-05
Oct-05
Dec-05
16
A fast-track route to AIM from
designated markets
Non-UK companies traded on one of these markets for
18 months prior can apply to be admitted without
publishing admission documents
Stockholm
Toronto
Stock
Exchange
Main
Board
Deutsche
Börse
Swiss
Exchange
NYSE
Euronext
Nasdaq
JSE
Australian
Stock
Exchange
The streamlined process makes it easier for companies to join AIM and attract
institutional investors and analyst coverage
17
Better value than NYSE or NASDAQ
Annual fees for Non-domestic Equities
Min US$
London Stock Exchange
Max US$
7,595
7,595
NYSE
35,000
500,000
NASDAQ - shares
21,225
60,000
AIM
Admission fees for Non-domestic Equities
Min US$
London Stock Exchange
7,595
7,595
NYSE
150,000
250,000
NASDAQ – shares & ADRs
100,000
150,000
AIM
Source: London Stock Exchange – April 2006
Max US$
18
Annual Cost to Maintain
Public Market
($ US)
NASDAQ National M arket
AIM
TSX
Directors & Officers Insurance
~ $500,000
~ $100,000
~ $250,000
Directors Fees & Expenses
~ $150,000
~ $150,000
~ $150,000
Annual Audit Accounting Fees
~ $300,000
~ $150,000
~ $150,000
404 Com pliance
~ $500,000
N/A
NA
Legal Fees
~ $300,000
~ $300,000
~ $150,000
Internal Costs for SEC &
Exchange Com pliance
~ $300,000
N/A
~ $150,000
SEC Filing Expenses & Listing
Fees
$35,000
~ $7,000
~ $39,000
Nom ad Expenses
N/A
~ $90,000
N/A
Other (Investor Relations,
Mailing, Printing, Trvl, etc)
~ $250,000
~ $125,000
~ $185,000
Total Approximate Cost
~ $2,335,000
~ $922,000
~ $1,074,000
Source: CanaccordAdams June 2006
19
Cost to Execute and IPO
($ U S )
N A S D A Q N a t io n a l M a r k e t
A IM
TSX
S h a r e s Is s u e d & $ R a is e d :
5 m illio n s h a r e s
$ 5 0 m illio n
2 0 m illio n s h a r e s
$ 5 0 m illio n
5 m illio n s h a r e s
$ 5 0 m illio n
R e g is t r a t io n F e e
~ $ 9 ,0 0 0
~ $ 2 0 ,0 0 0
~ $ 5 ,0 0 0
F ilin g F e e
~ $ 9 ,0 0 0
N /A
~ $ 5 ,0 0 0
L is t in g F e e
$ 1 0 0 ,0 0 0
~ $ 7 ,5 0 0
~ $ 7 0 ,0 0 0
P r in t in g E x p e n s e s
~ $ 2 2 0 ,0 0 0
~ $ 4 0 ,0 0 0
~ $ 4 0 ,0 0 0
Legal Fees
~ $ 7 5 0 ,0 0 0
~ $ 6 0 0 ,0 0 0
~ $ 3 5 0 ,0 0 0
A c c o u n t in g F e e s
~ $ 4 9 0 ,0 0 0
~ $ 3 5 0 ,0 0 0
~ $ 3 0 0 ,0 0 0
B lu e S k y F e e s
~ $ 1 0 ,0 0 0
N /A
N /A
T r a n s f e r A g e n t & R e g is t r a r
Fees
~ $ 1 0 ,0 0 0
~ $ 1 4 ,0 0 0
~ $ 1 5 ,0 0 0
R e t a in e r
N /A
~ $ 2 7 5 ,0 0 0
N /A
U n d e r w r it in g D is c o u n t / S t e p Up
~ $ 3 ,5 0 0 ,0 0 0
~ $ 2 ,5 0 0 ,0 0 0
~ $ 3 ,0 0 0 ,0 0 0
M is c e lla n e o u s
~ $ 7 5 ,0 0 0
~ $ 5 0 ,0 0 0
~ $ 2 5 ,0 0 0
T o t a l A p p r o x im a t e C o s t
~ $ 5 ,1 7 3 ,0 0 0
~ $ 3 ,8 5 7 ,0 0 0
~ $ 3 ,8 1 0 ,0 0 0
Source: CanaccordAdams June 2006
20
To summarise… why choose AIM
The world’s most successful growth market
An internationally focussed, professional investor base
Comprehensive research coverage for international companies
A more flexible approach to regulation
Better value than NYSE or NASDAQ
The Exchange of choice for companies wishing to access the
international capital markets
21
Key contacts
Anne Moulier
Business Development Manager – North America
amoulier@londonstockexchange.com
+44 (0) 20 7797 4584
Graham Dallas
Head of Business Development – EMEA & North America
gdallas@londonstockexchange.com
+44 (0) 20 7797 4055
Website: www.londonstockexchange.com
22
AIM
TAKING YOUR COMPANY
PUBLIC ON THE LONDON
STOCK EXCHANGE
www.klng.com
INTRODUCTION
Preparing for IPO
Corporate structure
Regulation
How to IPO
KEY PREPARATIONS
Appointment of advisers
Plan and prepare
Speak to your lawyers at an early
stage
KEY PREPARATIONS
Organisation of company s
management
Agree a timetable
Set up working groups
Get the right non-ex ecutive directors
CORPORATE STRUCTURE
Routes for US Companies
Three main routes
Tax considerations
US company admitted to AIM directly
Regulation S
Electronic trading CREST and SIS
Increased liquidity
CORPORATE STRUCTURE
Routes for US Companies
US company admitted via UK PLC
holding company
pre-admission reorganisation
share for share ex change
US company admitted via off-shore
holding company
tax considerations
US COMPANIES
Lighter regulation on AIM
No Sarbanes Ox ley equivalent rules
No Sarbanes Ox ley equivalent costs
Guidance on corporate governance
produced by Quoted Companies Alliance
AIM has a lighter approach to regulation
Increased Cost
SOX has negatively impacted
companies bottom line by
increasing the cost of compliance
Uncertainty
Increased Risk
SOX has increased international
companies exposure to US
litigation
SOX has increased international
companies uncertainty due to the
changing regulatory framework
The reality
of SOX
Increased Threat
Lost opportunity
Acquisitions become riskier,
harder and slower to complete
SOX has increased the threat to
the individuals in key roles (CEO &
CFO) of personal liability claims
CASE STUDY
PLC
DAWSON HOLDINGS
First company on AIM in 1995
Printed media distributor
Share price $8.25 to $15.40 in 1 year
Springboard to full list
Shares as acquisition currency
Turnover up from $122m in 1990 to
$1.3bn in 1999
AIM IN CONTEXT
Record years in 2004 and 2005
Large increase in IPOs by international
companies
$11.4 billion total IPO funds in 2005
$4.4 billion further fundraisings in 2005
AIM s popularity on international stage
Other secondary markets can t compete
AIM
the only credible m arket for SMEs
HOW TO IPO
Basic requirements
Advisers
Process
HOW TO IPO
Basic requirements
Requirements
no trading record needed
no minimum market cap
no minimum public float
Only 45 AIM rules
Less stringent continuing obligations
HOW TO IPO
Basic requirements
AIM Rules:
Shares capable of being offered to
public
Appoint and retain Nomad and Broker
No restrictions on transfer of shares
Eligibility for electronic settlement
All securities of class to be listed
Lock in requirements
HOW TO IPO
Your Advisers!
LEGAL
ACCOUNTING
Company's
Lawyers
(UK + US)
Auditors
NOMAD's
Lawyers
(UK)
Company
Board of
Directors
Nominated adviser/
NOMAD
PR Printers
Registrar
Reporting
Accountant
s
HOW TO IPO
Overview of process
Adm ission document drafted
Legal due diligence
Financial due diligence
Verification
protecting directors
London Stock Ex change formal dealing
notice
10-12 week timetable
KILLER FACTS
2,360 IPOs since 1995
All industry sectors
315 non-UK company IPOs
519 IPOs in 2005
$16 billion raised in 2005
K&LNG : A FEW FACTS
Over last 12 months:
1 st
1 st
1 st
spin out of businesses from
Nasdaq onto AIM (life sciences)
Greek based company t o IPO on
AIM (technology)
Japanese com pany to IPO on AIM
Advised on over 160 IPOs since 1998
Palo Alto, San Francisco
and Boston
Paul Watts
20 & 22 June 2006
PAUL WATTS, CAPITAL MARKETS PARTNER
Paul is a Corporate Finance
Capital Markets Partner at Baker Tilly in
London. He is a specialist in AIM IPOs, both in the UK and overseas, in a
variety of market sectors. He also has extensive experience of acquisitions,
investigations and due diligence assignments carried out for clients, bankers,
venture capitalists and other providers of finance.
Paul is a Fellow of the Institute of Chartered Accountants in England & Wales
and a member of the Corporate Finance Faculty. He is also co-author of The
Alternative Investment Market Handbook , published by Jordan s, and is
involved in a number of other AIM initiatives, including the annual Taking
AIM survey published by Baker Tilly.
Contact details:
paul.watts@bakertilly.co.uk
www.bakertilly.co.uk
Tel: +44 20 7314 6892
Baker Tilly, 2 Bloomsbury Street, London, WC1B 3ST
2
Introduction
About Baker Tilly and AIM
Preparation for flotation
Key accounting issues
Tax considerations
Continuing obligations and corporate
governance
Case study
3
Baker Tilly
7th largest UK accounting firm 30 offices, 2,000 staff, 260 partners
Baker Tilly International
8th largest network of independent accountancy firms worldwide
128 firms in 85 countries. $2bn fee income.
5th largest network in USA
PALO ALTO: Frank, Rimerman & Co.
SAN FRANCISCO: Frank, Rimerman & Co.
SAN FRANCISCO: Miller, Kaplan, Arase & Co.
BOSTON: Vitale, Caturano & Company
4
Winner of the Growth Company AIM Accountant of the year for the
years 2003, 2004, 2005 and 2006
Acted for over 150 companies that have sought an IPO (including 44 in
the last 12 months)
Have over 120 AIM audit and tax clients
Are represented on the London Stock Exchange AIM Advisory Group
(the only practicing accountant)
Have specialists in the tax benefit legislation and as such are authors of
A Guide to AIM Tax Benefits a joint London Stock Exchange and Baker
Tilly Publication
Acted to AIM IPOs of many overseas companies
In over 20 countries
7 USA companies
5
Grooming
Suitability (profit trends)
Corporate structure
Non-core assets
Board and management
Employee benefits & share options
Accounting policies
Tax
Investor relations
Business plan
6
Global facing
Products
Market
Emerging markets may be acceptable
Acceptance of corporate governance
Strong financial controls
Country Risk
Different investors have different perspectives
7
In Admission Document
Historical financial information
Working capital statement
Profit Forecast (rarely)
Pro forma financial information (sometimes)
To Company and Nomad
Financial due diligence - long form report
Aim Application form
Financial reporting systems and procedures declaration
Working Capital - declaration
Profit forecast - declaration
8
AIM Rules
Issued by London Stock Exchange (July 2005)
Prospectus directive (AIM PD)
Standards for Investment Reporting (SIRs) issued by the
UK auditing practices board APB) under ISAs
SIR 1000 - General
SIR 2000 Historical financial information
SIR 3000 Profit forecasts
SIR 4000 Pro forma financial information
Accounting standards
US GAAP, UK GAAP or IFRS
9
3 years audited financial statements
Attached to admission document, or
Comparative table with audit reports (if no adjustments), or
Comparative table with Accountants ( audit ) report (most likely)
Material subsidiaries acquired in last 3 years
Standards for investment reporting (SIR 2000), requires ISAs
Last 2 years in NEXT GAAP
EU companies: IFRS/IAS ( for periods commencing 1 January 2007 )
Others: US, Australian, Canadian or IFRS
Accountants report likely to be required
Prior Year Adjustments
GAAP change
Nomad requests
Additional disclosures applying to listed companies
10
Interim accounts
If published must be included
Required if admission document dated more than 9 months after
audited year end
May be unaudited (but Nomad often requires them to be audited)
Audited accounts no older than
18 months from date of document if audited interims
15 months if unaudited interims
11
Introduction
Executive Summary
History and business
Trading Results
Financial Position
Future Prospects
Management and staff
Sales and Selling
Purchasing
Accounting Systems and
controls
Taxation direct and indirect,
employment
Other environmental
insurances
12
Company declaration:
Procedures have been established which provide a reasonable basis
for the directors to make proper judgements as to the financial
position and prospects of the Issuer and its group
Board Memorandum / Accounting procedures manual
(template can be provided)
Comfort letter / report by reporting accountants
New procedures often required to be implemented to
supplement existing ones
13
Statement by directors:
Required:
in their opinion having
made due and careful
enquiry, the working capital
available to it and its group
will be sufficient for its
present requirements that is
for at least twelve months
from the date of admission
Forecasts 18 months to 3
years
Integrated model of profit,
cash flow and projected
balance sheets
Detailed assumptions
Visibility
Sensitivity analysis
Growth strategy
Board
memorandum/comfort
letter by reporting
accountants or
Working capital report
Includes funds to be raised
Include IPO costs
14
Is the current structure tax-optimal?
UK or non-UK holding company
Issues arising from restructuring if not
CGT on transfers
Tax clearances
Shareholder/director personal tax planning
Employment-related securities rules
15
Formal role as reporting accountants
Identify and quantify tax risks
Draft suitable disclosures for admission document/comfort letter
Responsibility for overall tax risks of structure
Liaison with US tax advisers
Tax due diligence
Identify and quantify tax risks and compliance
Corporate - Federal, State
Payroll / employment
Sales
16
Common issues in practice
Scope creep and emerging facts
Uncertainty about beneficial ownership
Tax planning already implemented
UK holding company, but operations in low taxed jurisdictions
Non-UK holding company, but UK resident directors
Potential tax liabilities with newly created groups
Employment related securities
Transfer pricing
Controlled foreign companies
Impact of new holdco on EIS/VCT relief
17
Tax benefits of AIM for investors
Quoted, but unquoted!
Tax breaks for cost of investment (smaller companies only)
EIS
VCT
10% CGT rate on exit after two years UK tax payers
Relief from inheritance tax - UK domiciled individuals
18
Annual audited accounts
Published within 6 months
US GAAP (if US company)
Half Yearly Reports
Announce to market - 3 months after relevant period (max)
Balance sheet, income statement, cash flow, certain notes
Comparatives for corresponding period in previous year
Need not be audited
No quarterly reporting requirements
Sarbanes-Oxley
No requirements (in many cases but care needed)
19
No mandatory requirements for AIM companies
Best practice based on combined code requirements
Principles:
Efficient management
Effective management
Entrepreneurial management
Code of Best Practice for AIM companies
Quoted Companies Alliance (QCA)
QCA Link: http://www.qcanet.co.uk
20
(as at 30 April 2006)
GATEKEEPER SYSTEMS INC*
INTERNATIONAL METAL ENTERPRISES INC
INVU INC
LEGACY DISTRIBUTION GROUP INC
OCEAN POWER TECHNOLOGIES
PEACH HLDGS INC
PLANET GROUP INC
POLYFUEL INC
SKY CAPITAL ENTERPRISES*
SKY CAPITAL HLDGS*
SOLAR INTEGRATED TECHNOLOGIES INC
SPACELABS HEALTHCARE INC
SPEARHEAD
UTEK CORP*
WEST 175 MEDIA GROUP INC*
XL TECHGROUP INC
121MEDIA INC
AKERS BIOSCIENCES INC
ALLIED HEALTHCARE INTERNATIONAL INC
AQUA BOUNTY TECHNOLOGIES INC
BODISEN BIOTECH INC
BURST MEDIA CORP
CARDIOMAG IMAGING INC
CLEAN DIESEL TECHNOLOGIES INC
CROSS SHORE ACQUISITION CORP
CYBERSCAN TECHNOLOGY INC
DIC ENTERTAINMENT HLDGS INC
ELCOM INTERNATIONAL*
ENOVA SYSTEMS INC*
ENTELOS INC
FRONTERA RESOURCES CORP
FRONTIER MINING
* Baker Tilly acted
21
Enova Systems Inc. (AIM: ENOV)
Admission to AIM July 2005
Raised $20 million
Costs $2.1m (10.5%)
Market capitalisation on IPO of $55 million
Market capitalisation at 12/6/06 of $60 million
Shares also traded on OTC Bulletin Board
Based Torrance, CA
Development and production of hybrid electric engines
Reporting accountants: Baker Tilly
Nomad and Broker: Investec
22
Agree timetable, responsibilities and scope
Availability of historical audited accounts, US GAAP
Auditing standards
Provide checklists and templates
Board memoranda - working capital, financial reporting
Due diligence checklists
Structure issues
Legal and tax issues
Corporate governance
Look for solutions not problems
23
Palo Alto, San Francisco
and Boston
Paul Watts
20 & 22 June 2006
Introduction to Investec and AIM
June 2006
2
Investec contact details
Rupert Krefting
Tel. +44 20 7597 5133
rupert.krefting@investec.co.uk
Patrick Robb
Tel. +44 20 7597 5169
patrick.robb@investec.co.uk
Gary Clarence
Tel. +44 20 7597 5197
gary.clarence@investec.co.uk
Paul Gray
Tel. +44 20 7597 5197
paul.gray@investec.co.uk
3
AIM background
D istribution of com panies by equity m arket value
Rapidly expanding market in terms of no. of companies
400
and credibility
340
As at the end of February 2006
there were 1,426 companies quoted on AIM
the average market cap of AIM companies was £46m
Sportingbet plc (an Investec client) was the largest
capitalised company at £1,661.7m, followed by New
Star Asset Management Group at £1198.3m and Sibir
Energy at £1109.04m
Number of companies
350
300
250
200
217
186
185
155
162
150
117
100
24
50
0-2
2-5
5 - 10
10 - 25 25 - 50 50 - 100
100 250
Market value range £m
Only a very small number of institutions cannot invest in
AIM companies
IPO s on AIM:
335 companies in 12 months ended December 2005
with a value of £12.3bn raising £5.6bn
243 listed in AIM in the calendar year 2004 with a value
of £6.4bn raising £2.3bn
8
6
500 1,000
Over
1,000
0
Source: London Stock Exchange
250 500
4
AIM vs NASDAQ statistics
N umber of companies & t heir size
800
700
The constituents of the London Stock
AIM
600
Exchange s AIM market are spread over a
NASDAQ
500
much smaller market capitalisation than
400
the NASDAQ
300
200
100
As at 31 May 2006 the average market
0
< $10m
$10m $25m
$25m $50m
$50m $100m
$100m - $250m $250m
$400m
$400m $1bn
over
US$1bn
cap for an AIM company was $95 million
versus $1.2 billion on NASDAQ
AIM average daily value traded since AIM launch (£m)
300
250
The average daily value traded on AIM
200
has steadily increased to £272.4 million as
150
of 2006 to April
100
50
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006 to
Apr
5
Characteristics required for a successful AIM floatation
A successful flotation on AIM will exhibit the following characteristics:
Experienced management team
Strong track record
Potential for growth
Visibility of earnings
Well defined market with strongly defendable position
Competitive advantages
Clearly communicated strategy
Innovative product/service/technology
6
Characteristics required for a successful AIM floatation
In relation to US businesses looking to float on AIM the following additional characteristics would be
highly valued:
International flavour to the business (non-US revenues or locations outside the US)
Plans for international expansion
Incorporation of holding company
Willingness to Anglicise the Board with suitable Chairman and Non-Executive directors
IFRS accounting standards
Minimum size or fundraising requirements:
Market capitalisation on float
Free float and fundraising
ideally above £50 million
minimum £10m or at least 25% in public hands
Maximum sell-down for management
30%
7
Benefits of an AIM listing
Ability to raise capital
Create a market in the company s shares - giving existing shareholders a
potential opportunity to exit
Encourage employee ownership
option schemes
Use equity as currency for acquisitions
Enhanced company profile through increased press coverage and public
reporting
Enhance status- transparency of financial reporting
8
Likely Investors
Access to this segment of the
market via retail brokers and
private client fund managers
UK retail
investors
Can provide useful incremental
demand for large UK IPO
European and US
investors
Absolute return
funds
UK long only investors will
provide the bulk of demand for
the IPO
Core UK Investors
Demand not reliable but have
been seen to participate
meaningfully in recent IPOs
9
AIM listing requirement
The principal requirements to list on AIM are:
All shares of the same class must be admitted
Must appoint a LSE approved Nominated Adviser
Must appoint a Broker
Produce an AIM admission document
For pre-revenue companies
one year lock-in
10
Indicative timetable
WEEK1
Appoint Nominate Adviser
Appoint Broker
WEEK 2-6
WEEK 7
WEEK 8
Appoint accountants and lawyers
Due Diligence
legal
Due Diligence
financial
Due Diligence
commercial
Due Diligence
IT / other
First draft Admission Document
Draft due diligence reports
First draft accountants report
Second draft Admission Document
WEEK 9
Final draft accountants report
Final draft Admission document
Ten day announcement released
Marketing to institutions
Six copies of final Admission documents submitted to the LSE
WEEK 10
AIM declaration submitted
Nominated Adviser announcement
ADMISSION
11
The admission document
Information required:
- The company s principal activities, management, supervision
- The company s financial position; assets, liabilities, and prospects in the form of an accountant s report
Director s statement that working capital is sufficient for the next twelve months
Director s directorships for the last five years
Contractual arrangements entered into by the Company
Persons interested in 3 per cent. or more of the company s share capital
Introduction to Investec
History
Established in 1974
Today, efficient integrated international business platform
employing 4,163 people, including 1,308 in the UK
UK
Market Cap £2.8bn
Investment
Banking
Treasury
and
Specialised
Finance
PBT year to 31 March 05 of £222.4m
S
Private
Client
Activities
AU
13
Investec: a distinctive specialist banking group
Strategy
CLIENT
Property
Activities
Asset
Management
Client focused approach
Delivering profitable solutions with distinction and integrity
Investec distinction: Nimble, flexible, innovative and high level
of service
SA
Culture
Flat and efficient management structure
Strong risk management and financial discipline
Entrepreneurial culture - material employee ownership
14
Our focus
We aim to be a
dominant player
in the mid market
arena (£50
Full Service /
International
Model
Bulge Bracket
million to £1
billion)
UK boutiques
Small-cap focus
Mid-market focus
Large-cap focus
15
One of the most active banks on AIM
AIM Equity Issues - January 2005 to April 2006
Client
T ype
Description
Ludurom
IX Europe
2 W ay Traffic
Aurora Russia
Cohort
Sportingbet
Civica
Alltracel Pharmaceuticals
CMR Fuel Cells
Supporta
Pursuit Dynamics
Supporta
Enova Systems
MonsterMob Group
Civica
Melrose
RDF Media Group
Alternative Networks
Average
IPO
IPO
IPO
IPO
IPO
Secondary placing
Follow-on
Follow-on
IPO
Follow-on
Follow-on
Follow-on
IPO
Follow-on
Follow-on
Follow-on
IPO
IPO
£4.9m fundraising and admission to AIM
£10.0m fundraising and admission to AIM
£24.3m fundraising and admission to AIM
£75.0m fundraising and admission to AIM
£9.5m placing and admission to AIM
£65.5m secondary placing of Sportingbet shares with institutional investors
£26.0m placing and £49.8m acquisition of Comino Group
£1.1m cash placing at 11p per share
£35.7 million admission to AIM
£6.9m placing and £6.5m acquisition of Independent Living Organisation Limited
£8.0 million placing
£6.0m placing and acquisition of Roger P. Dudley Limited
£11.5 million placing and admission to AIM
£20.0m cash placing
£10.0m cash placing and acquisition of Flare Software Systems (UK) Limited
£429.0m acquisition of Dynacast Group and McKechnie Group and £200.0m fundraising
£48.8 m IPO
£44.3 m IPO
Source: Datastream April 2006
Completion
Date
Funds Raised
($m)
Current
Market Cap
($m)
After market
performance
2006
2006
2006
2006
2006
2006
2006
2006
2005
2005
2005
2005
2005
2005
2005
2005
2005
2005
8
16
40
130
17
116
46
2
18
12
14
10
20
36
17
349
49
22
57
11
90
198
130
48
2969
222
25
80
101
146
101
44
342
222
678
138
90
356
22%
36%
4%
n/a
9%
3%
7%
7%
26%
16%
8%
53%
114%
33%
17%
49%
52%
12%
29%
16
UK Small Cap Fund Managers rate Investec as No.1 AIM broker
Investec s AIM client list
AIM BROKER SURVEY 2006
What UK Small Cap Fund Managers think
(28 APRIL 2006)
Questions asked
I would invest in its IPOs
1st
I would make time to read its research
1st
I would meet companies it floats
Top AIM
Broker
1st
Investec's AIM Clients
Investec Role
2 Way Traffic
Alltracel Pharmaceuticals PLC
Alternative Networks PLC
Anzon Energy PLC
Aurora Russia PLC
Civica PLC
CMR Fuel Cells PLC
Cohort PLC
CRC Group PLC
Datacash Group PLC
Enova Systems
IX Europe PLC
Lodurum PLC
Lok'nStore Group PLC
MacLellan Group PLC
Matrix Communications PLC
MonsterMob Group PLC
Northern Petroleum PLC
Pipex Communications
Pursuit Dynamics PLC
RDF Media Group PLC
Ridge Mining PLC
Sportingbet PLC
Supporta PLC
TRL Electronics PLC
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Broker
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
Advisor
and Broker
& Joint Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
and Broker
MarketCap (£m)
116.7
81.7
50.6
81.7
73.9
125.3
45.0
31.7
18.1
64.4
24.6
52.6
6.2
44.2
92.3
36.2
192.6
38.6
318.0
82.2
77.7
26.7
1674.2
57.0
57.0
17
UK Small Cap Fund Managers rate Investec as No.1 AIM broker
Investors Chronicle
Top AIM Brokers
2006
Overall
Score
Source: Investors Chronicle (28 April 2006)
Investors Chronicle
Top 30 AIM Brokers
2006
Overall
Score
18
Investec AIM credentials
Investec recent AIM client wins
Recent AIM IPOs
RDF MEDIA GROUP PLC
CMR FUEL CELLS PLC
2WAY TRAFFIC N.V.
LUDORUM PLC
IX EUROPE PLC
May 2005
November 2005
April 2006
April 2006
April 2006
Raised: £29m
Raised: £11.5m
Raised: £24.3m
Raised: £4.9m
Raised: £10m
61%
32%
4%
22%
36%
Ludorum plc (market cap £6.2m)
Northern Petroleum plc (market cap £83.3m)
Appointed Adviser & Broker in April 2006
Appointed Adviser & Joint Broker in December 2005
IX Europe plc (market cap £52.6m)
Sportingbet plc (market cap £1,605.7m)
Appointed Adviser & Broker in April 2006
Appointed Adviser & Broker in September 2005
2 Way Traffic (market cap £116.7m)
Alltracel Pharmaceuticals (market cap £12m)
Appointed Adviser & Broker in April 2006
Appointed Adviser & Broker in September 2005
Aurora Russia plc (market cap £73.9m)
Enova Systems Inc (market cap £48m)
Appointed Adviser & Joint Broker in March
2006
Appointed Adviser & Broker in July 2005
CMR Fuel Cells plc (market cap £47.2m)
RDF Media Group plc (market cap £79.9m)
Appointed Adviser & Broker in December 2005
Appointed Adviser & Broker in May 2005
19
All of our IPOs in 2004 and 2005 are trading above issue
price
52%
107%
ATTENTIV
DIGNITY
March 2004
April 2004
Raised: £32m
Raised:
87%
VIRGIN MOBILE
July 2004
Raised: £125m
171%
TRL ELECTRONICS
71%
INCAT INTERNATIONAL
11%
ALTERNATIVE NETWORKS
July 2004
November 2004
February 2005
Raised: £13m
Raised: £13m
Raised: £13m
104%
63%
32%
STHREE
CMR FUEL CELLS
£184m
61%
RDF MEDIA GROUP
71%
MELROSE
40%
LAND OF LEATHER
ENOVA SYSTEMS
May 2005
May 2005
July 2005
July 2005
November 2005
December 2005
Raised: £29m
Raised: £202m
Raised: £37.5m
Raised: £11.5m
Raised: £91.3m
Raised: £11.5m
Re-Admission
Following reverse
Acquisition
20
500
0
Clinical Computing
Ludorum
Lorien
Alltracel Pharmaceuticals
CRC Group
Reed Health Group
Treatt
Ridge Mining
Cohort
Fibernet Group
Carr's Milling
Matrix Communications
Nord Anglia Education
CMR Fuel Cells
Lok'n Store Group
Ferraris Group
Alterian
Enova Systems
Bioquell
Alternative Networks
Northern Petroleum
IX Europe
Havelock Europa
Plasmon
Supporta
Datacash Group
Sportech
Vislink
OPD Group
Anzon Energy
Aurora Russia
TRL Electronics
RDF Media Group
Pursuit Dynamics
Aurora Russia
Maclellan Group
Land of Leather Holdings
Alphameric
2Way Traffic
Civica
Communisis
SDL
Alba
John David Group
Richmond Foods
Clinton Cards
Alexon Group
British Polythene
Arena Leisure
Bespak
Robert Walters
Incisive Media
Morse
AG Barr
MonsterMob Group
TDG
Devro
Robert Wiseman Dairies
Ted Baker
Care UK
European Motor Holdings
Bloomsbury Publishing
Mothercare
Johnson Service Group
Datamonitor
Cranswick
Thus Group
Huntleigh Technology
House of Fraser
Pipex Communications
Homestyle Group
Chemring Group
Whatman
Dignity
RPS Group
Erinaceous Group
Melrose
Paddy Power
Greencore Group
JKX Oil & Gas
Workspace Group
Enodis
Virgin Mobile Holdings
Kingspan Group
Sportingbet
Carphone Warehouse
Market Cap (£m)
Retained clients
£1627m
£1374m
£968m
£2479m
800
700
600
AIM
Official List
400
300
200
100
Appendix 1
22
UNDERSTANDING
EDUCATION
IPO structure and marketing process
Structure
Investor
targeting
Due diligence
and
documentatio
n
Due Diligence and
Documentation
Advisers
Initial due diligence
UK demand is key
Corporate structure
Key selling messages
Finalise institutional target list (circa
Issue size and syndicate structure
position the Company
50 one-to-one meetings)
Timing
address potential concerns
Test marketing
Incentive plans
Draft Admission Document /
Board composition/committees
Prospectus
Investor relations
UKLA if process Prospectus
required
Structure
Investor Targeting
Analyst presentation
Roadshow presentation
Analyst pre-marketing
23
IPO structure and marketing process
PRICE DISCOVERY
The Research Analyst briefing is an essential step towards ensuring
harmonised pre-deal research on behalf of syndicate analysts
Research
Preparation
Objectives
Educate all analysts fully on the Company Story
Ensure consistency of marketing messages
Marketing
Management fully brief analyst
EDUCATION
Analysts and specialist technology sales invited to visit the Company s headquarters
Investor
targeting
Research
Preparation
Strategy
Draft research reports reviewed by Company legal advisers and Management to ensure
consistent message and accuracy
Reports published
UNDERSTANDING
Blackout period commences (and lasts until 40 days after admission)
Due diligence
and
documentatio
n
Structure
24
IPO structuring and marketing process
PRICE DISCOVERY
The pre-marketing led by Research and Sales teams is a key
opportunity to educate and market to the most appropriate investors
Educate potential investors
Pre-Marketing
Marketing
Objectives
Identify actual investors
Communicate key strengths and concerns
Understand investors preliminary view on the valuation and price sensitivity
EDUCATION
Build momentum for the transaction in advance of the roadshow
Assign priority research coverage of accounts to syndicate members
Investor
targeting
Conduct thorough analysts roadshows to educate high priority accounts
Pre-Marketing
UNDERSTANDING
Strategy
Due diligence
and
documentatio
n
Structure
Collect and compile feedback from investors and syndicate
Analyse and address key issues on the roadshow
Target and contact interested investors for one-on-ones and group meetings
Prepare investors for management meetings
25
PRICE
PRICE
DISCOVERY
DISCOVERY
IPO structuring and marketing process
Research report
Written by Investec Securities distributed by email and hard copy to extensive list
Published at least 2 weeks before Management roadshow
Marketing
Material
Marketing slides
Worked up by the company and Investec
Marketing
Around 20 slides
EDUCATION
40 minutes presentation time and questions
Personnel
Investor
targeting
Probably CEO and FD from the company
Test marketing
UNDERSTANDING
Prior to publication of Research coverage and Analyst roadshow
Due diligence
and
documentatio
n
Marketing
Programme
Visit 6 key potential investors
Gain early view of demand and price sensitivity
Roadshow period
2-3 weeks
Typically 6 x 1-2-1 meetings at investor premises, plus group lunch each day
Structure
One hour meetings + 15 minutes transfer
60+ presentations likely
26
IPO structuring and marketing process
The roadshow is the most critical part of the process providing investors with direct
management contact and the key opportunity for management to address any investor
concerns
External day
Typical roadshow
Convert warmed-up potential investors into buyers
Roadshow objectives
8.00
Investor breakfast (group or
individual)
Meeting management
Addressing issues
9.00
10.00
11.00
Complete investor education
We would work closely with you in drafting a roadshow presentation
One-on-One s with key
investors (2 or 3)
(45 minutes of presentation including by 10-15 minutes Q&A session)
We will prepare Q&A book
12.00
13.00
Two to three rehearsals (including funding Q&A sessions) will be
Investor lunch (group or
individual)
Roadshow preparation and
strategy
14.00
15.00
16.00
scheduled
Training if required will be arranged
Presentation to sales force prior to the roadshows as a warm-up
Educate sales force and create ownership of offering
One-on-One s with key
investors (2 to 4)
Enable the sales force to have a better understanding of the
management
17.00
Feedback on group meetings and one-on-ones will be provided
18.00
throughout
The success of one-on-one meetings determines the outcome of the
19.00
Dinner/drinks with investors
20.00
offering
27
PRICE DISCOVERY
Maximise allocation to investors who will buy, hold and buy more. Scope to
determine level of cover and aftermarket performance
Pricing and
allocation
We will decide on the allocation based on factors including
Salesforce feedback
Timing of order entry (demand increase, limit changes)
Participation in one-on-ones, roadshow, research calls
Price limits
Marketing
Marketing
Size of order relative to average holding size
Previous experience in new issues (demand increase, limit changes)
EDUCATION
Likely aftermarket behaviour (aftermarket order)
UNDERSTANDING
PRICE DISCOVERY
IPO structure and marketing process
Investor
targeting
Investor
targeting
Due diligence
and
documentatio
n
Structure
28
PRICE DISCOVERY
Aftermarket
support
Market Intelligence
Constant monitoring of the Company s share price and trading volumes
Information on the buyers and sellers of the Company s shares
Pricing and
allocation
Investor Relations
Share register analysis
Advice and assistance in targeting new investors
Marketing
Marketing
Marketing
Roadshow co-ordination
Investor feedback
EDUCATION
Assistance in preparation of Investor Materials and Company announcements
Investor
Investor
targeting
targeting
Investor
targeting
Corporate Advice on
All LSE issues and other technical issues
Likely stock market reaction to proposed announcements
Structuring equity transactions and further sell downs
UNDERSTANDING
PRICE DISCOVERY
Aftermarket support
Due diligence
and
documentation
Structure
Structure
Execution of equity transactions
Appendix 2
Other considerations
30
The formation of the Board
Combined Code:
The Board - Every listed company should be headed by an effective board, which is
The Combined Code does not apply to AIM
collectively responsible for the success of the company
On 13 July 2005, the Quoted Companies Alliance (QCA),
Chairman and chief executive - There should be a clear division of responsibilities
the representative body for small and mid-cap quoted
at the head of the company between the running of the board and the executive
companies published its first corporate governance
responsibility for the running of the company's business. No one individual should
guidelines for AIM Companies
have unfettered powers of decision
They include a code of best practice for AIM companies,
Board balance and independence - The board should include a balance of
comprising some simple principles, intended as a minimum
executive and non-executive directors (and in particular independent non-
standard, and recommendations for reporting corporate
executives) such that no individual or small group of individuals can dominate the
governance matters
board s decision making
Appointments to the Board - There should be a formal, rigorous and transparent
procedure for appointment of new directors
Information and professional development - The board should be supplied in a
timely manner with information in a form and of a quality appropriate to enable it to
discharge its duties. All directors should receive induction on joining the board and
should regularly update and refresh their skills and knowledge
Performance evaluation - The board should undertake a formal and rigorous
annual evaluation of its own performance and that of its committees and individual
directors
Re-election - All directors should be submitted for re-election at regular intervals,
subject to continued satisfactory performance. The board should ensure planned
and progressive refreshing of the board
31
Employee incentivisation
Share incentives granted and exercised pre/on IPO are a
PreIPO
matter for selling shareholders
Approved share incentive schemes
5-10% under option rolling over 10 years
Company share option plans (CSOP)
Savings related share option schemes (SAYE)
Post IPO
-
Free shares (<£3k to employees in tax year)
-
Partnership shares (employee buys shares from own
pre-tax income. Max: < £1.5k p.a or 10% of pay)
PostIPO
Grants to be phased over a period of years
Share incentive plans (SIP
-
Matching shares (free additional company supplied
Exercise of options require Company performance hurdles,
typically a mixture of total shareholder return and EPS
growth
shares to employees buying partnership shares. Max
of 2 matching shares for every1 acquired)
-
Option grant spread throughout organisation
Dividend shares
Unapproved share incentive schemes
IFRS impact
expensed to P&L
Unapproved share option schemes
LTIP
Deferred share bonus scheme
Specialist advice from
New Bridge Street
Big 4 accountancy practice
Law firms
Appendix 3
AIM case studies
33
AIM flotation
IX Europe plc
IX Europe is one provides datacentre capacity and service to enterprise, Internet and telecoms customers
such as Merrill Lynch, Capgemini, Google
£10 million placing
IX Europe intends to use the proceeds of the placing for the repayment of a £5 million bridging loan and
and admission to
AIM
shareholder loans of £1.9 million. Further proceeds will contribute to the fit out of a further large planned
datacentre in the West of London
Adviser & broker
The company announced its intention to list on AIM on 22 March 2006 and was admitted to trading on 7 April
April 2006
2006
In addition to Admission the Company also raised £10 million through an institutional placing
Shareholders:
-
Cazenove
7.25%
-
Balyasny Asset Management
-
Fincapital
-
Ruffer Investment Managers
-
Jupiter
-
British Steel
-
Merrill Lynch Investment Managers
-
JO Hambro
2.17%
2.17%
2.17%
1.94%
1.65%
1.45%
1.54%
34
AIM flotation
Ludorum plc
Ludorum was recently established to focus on rapidly evolving technology platforms through which to
distribute intellectual property (IP). The primary focus of the company will be on the media and entertainment
fields
£4.9 million placing
and admission to
AIM
The primary reason for their listing on AIM was to give the Company a higher pro¢le than if it were an
unquoted company and provide access to capital which will be required to implement its strategy. Pending
identification of suitable investments, the net proceeds of the placing will be used to fund the working capital
Adviser & broker
requirements of the Company which may include any acquisition costs incurred by the Company.
April 2006
The company was admitted to trading on AIM on 3 April 2006
In addition to Admission the Company also raised £4.9 million through an institutional placing
Shareholders:
-
DC Thomson & Co Ltd
20.0%
-
Foreign & Colonial
-
Ruffer Investment Management
-
Taube Hodson Stonex Partners Ltd
-
Gartmore
-
Revera Asset Management
-
Hargreave Hale
-
Savoy Asset Management
12.1%
10.1%
8.0%
8.0%
5.1%
5.0%
10.1%
35
AIM flotation
Aurora plc
Aurora established to acquire interests in small and mid-sized private companies in Russia which are focused
on the financial, business and consumer services sectors
£ 75 million placing
and admission to
AIM
Aurora Russia intends generally to take equity stakes of greater than 20 per cent. in each portfolio company. It
is anticipated that each equity investment will typically be between £5 million and £25 million
The primary reason for their listing on AIM was to fund investments in accordance with its investment policy
Adviser & joint
broker
and strategy, to pay ancillary costs and for general corporate purposes.
March 2006
The company announced its intention to list on AIM on 14 March 2006 and was admitted to trading on 24
March 2006
In addition to Admission the Company also raised £75 million through an institutional placing
Shareholders:
-
RAB Capital
10.7%
-
Scottish Widows
-
New Star Asset Management
-
Fidelity Investment Services
-
Aegon
-
TT International
-
Framlington Investment Management
-
Henderson
10.0%
8.9%
6.9%
6.7%
6.6%
6.0%
6.3%
36
AIM flotation
2Way Traffic plc
2waytraffic is an international developer and exploiter of revenue generating interactive television content and mobile
content for mass audiences
£ 24.3 million
placing
and admission to
AIM
2waytraffic intends to The Group markets its mobile content business by targeting subscribers through broadcasting
interactive commercials on carefully selected broadcasters in North America, Central Europe and Asia which address
the target audience for these services.
The primary reason for their listing on AIM was to provide the Company with access to capital markets and provide an
Adviser & broker
acquisition currency which will allow it to play an active role in the consolidation of the interactive content value chain
March 2006
where appropriate opportunities arise.
The Company was admitted to trading on AIM on 7 April 2006
In addition to Admission the Company also raised £24.3 million through an institutional placing
Shareholders:
-
Kempen & Co
8.3%
-
TT International Investment Management
-
BWD Rensburg
-
Trafalgar Asset Management
-
RC Brown Investment Management
-
Baring Asset Management
-
New Star Asset Management
-
Hargreave Hale
-
Rathbones
7.1%
1.2%
1.2%
7.0%
1.6%
1.4%
1.8%
8.3%
37
AIM flotation
Cohort plc
Cohort's sole initial trading subsidiary, Systems Consultants Services Limited ("SCS"), is a leading
Cohort PLC
independent defence technical services business based in Henley-on-Thames, Oxfordshire in the United
Kingdom.
£ 9.5 million placing
and admission to
AIM
SCS provides a range of technical services to clients in the defence and security sectors, its principal client
being the UK Ministry of Defence ("MOD")
Adviser & broker
The primary reason for their listing on AIM was to capitalise on opportunities to grow, both organically and
March 2006
through acquisition, in the defence technical services market.
The company announced its intention to list on AIM on 28 February 2006 and was admitted to trading on 8
March 2006
In addition to Admission the Company also raised £9.5 million through an institutional placing
Shareholders:
-
Unicorn Asset Management
-
Schroder Investment Management
-
Societe Generale Asset Management
8.40%
-
Framlington Investment Management
7.24%
-
Octopus
7.11%
-
Invesco
4.53%
-
Hargeave Hale
4.27%
10.67%
10.47%
38
AIM flotation
RDF Media Group plc
RDF Media Group plc, established in 1993, is one of the UK s leading independent television production and
distribution companies
£28 million placing
and admission to
AIM
Adviser & broker
May 2005
The primary reasons for listing on AIM was the Director s belief that a quotation on AIM was the next step in
achieving the Company s long term growth strategy. The Admission will enable the Company to pursue this
strategy.
The Company announced its intention to list on AIM on 4 April 2005 and was admitted to trading on 4 May
2005
In addition to Admission the Company also raised £27.9 million through an institutional placing
Shareholders:
- Insight Investment Management 10.8%
- Cazenove Fund Management 10.8%
- Merrill Lynch Investment Management 9.8%
- Standard Life Investments 9.0%
- M&G Investment Management 6.2%
- Scottish Widows 5.7%
- Canada Life 4.8%
- Aegon Asset Management 4.0%
39
AIM flotation
Alternative Networks plc
Alternative Networks plc is the leading UK independent business to business telecommunications reseller,
offering mobile, fixed-line and data products to UK SME and small corporate customers
£13 million placing
and admission to
AIM
The primary reasons for their listing on AIM was the regulatory ease of making future acquisitions and the
favourable tax status afforded to certain AIM investments
The Company announced its intention to list on AIM on 15 February 2005 and was admitted to trading on 18
Adviser & broker
February 2005
February 2005
In addition to Admission the Company also raised £12.7 million through an institutional placing
Shareholders:
-
New Star Asset Management
2.8%
-
Merrill Lynch Investment Management
-
JP Morgan Fleming Asset Management
-
Aegon Asset Management
-
Insight Investment Management
-
UBS Asset Management
-
Framlington Investment Management
-
Scottish Widows plc
2.8%
2.7%
2.3%
1.9%
1.4%
1.2%
1.2%
40
AIM flotation
INCAT International plc
INCAT International PLC is a US-based global provider of software and associated services to automotive,
aerospace and industrial manufacturers
£13 million placing
and admission to
AIM
The primary reason for their listing on AIM was its suitability for fast-growing companies whose revenues are
derived mainly from overseas
The company announced its intention to list on AIM on 16 November 2004 and was admitted to trading on 30
Adviser & broker
November 2004
November 2004
In addition to Admission the Company also raised £13.0 million through an institutional placing
Shareholders:
-
Framlington Investment Management
-
Hermes Investment Management
-
Global Asset Management
4.5%
-
British Steel Pension Fund
3.5%
-
Cazenove Fund Management
-
Herald Investments
-
RC Brown Investment Management
-
Liontrust Investment Services
5.8%
4.9%
3.5%
2.2%
2.1%
1.8%
The Company was acquired by the Tata Group in October 2005 for a 71% premium to the issue price.
41
AIM flotation
Anzon Energy plc
Anzon Energy PLC is an Australian based oil and gas development and production group
The primary reason for their listing on AIM was to exploit the acquisitive and growth opportunities which exist
£45 million
introduction to AIM
in the global oil and gas market.
The admission would also enhance Anzon s profile as a quoted company and to provide access to a wider
pool of equity finance.
Adviser & broker
November 2004
The company announced its intention to list on AIM on 14 November 2005 and was admitted to trading on 16
November 2005
42
AIM flotation
Enova Systems plc
Enova Systems is a US based company that develops and produces power management systems for
transportation vehicles in addition to providing these systems for stationary power applications.
£ 31.7 million
placing
and admission to
AIM
Adviser & broker
The primary reason for their listing on AIM was to strengthen its balance sheet, accelerate research and
development expenditure and expand its production capabilities.
The company announced its intention to list on AIM on 19 July 2005 and was admitted to trading on 26 July
2005
July 2005
In addition to Admission the Company also raised £11.5 million through an institutional placing
Shareholders:
-
JO Hambro Capital Management Ltd
-
Global Asset Management
-
Framlington Investment Management
-
Merrill Lynch Investment Managers
-
New Star Asset management
-
Newton Investment Management
-
Invesco
-
R C Brown Investment Management
15.7%
12.1%
8.7%
8.7%
8%
7.1%
7%
5.3%