Listing Rules And Prospectus Requirements Flashcards
What are the 5 most important conditions for a premium listing?
- Company should have published accounts that cover at least three years
- expected aggregated market value of all securities to be listed must be at least:
a. £30 million for shares
b. £200,000 for debt securities - Free float - 10% of the listed securities must be held by the public.
- Have sufficient working capital to cover at least the next 12 months of the business.
- Sponsor is required in connection with the admission for listing.
What are some of the differences in conditions for listing between a standard listing and a premium listing?
- Standard listing does not need a published three-year trading record.
- Standard listing does not need the 12 month working capital statement.
- Standard listing does not need a sponsor.
What is the main listing rule?
No securities can be admitted unless the listing authority has approved either listing particulars or a prospectus and these documents must have been published
When is a prospectus required?
- Whenever an application for a listing is made and securities are to be offered to the public before admission to listing.
- If securities are not to be offered to the public, a prospectus is not required. But, listing particulars still need to be approved and published by the listing authority.
The UK prospectus regulations also require publication of a prospectus where:
- Securities are admitted to trading on a regulated market in the UK or admitted to a listing in the UK.
- A firm is making a public offer in the UK.
The prospectus rules specify the context of a prospectus in general. The prospectus should disclose:
- Prospects of the issuer
- The rights attached to the securities.
- All information that an investor would require regarding the assets and liabilities, financial position, profits and losses
What are some of the rules for listing on AIM (Alternative Investment Market)
- Administered by the LSE
- Listing roles come from UKLA. AIM comes from LSE
- Nominated advisor - to ensure that the company is suitable for admission to AIM.
- Admission document - needs to list companies directors, promoters, business activities and financial position
- Need to disclose financial performance through interim and full year results.
- AIM is not part of the official list but is classified as an MTF.
A further segment of the LSE main market is the High Growth Segment (HGS)
Briefly explain what HGS is
- Attracts high growth mid-sized UK and European companies aspiring to an official listing.
- HGS company is larger than a typical AIM company.
- Aspire to join the premium segment of the main market.
What is the eligibility criteria that an HGS (high growth segment) needs to meet to join the Official Listing?
- Be incorporated in the EEA. (European Economic area)
- Be a commercial company is issuing equity shares only.
- Have a minimum free flow of 10% at IPO (initial public offering) i.e. min. of 10% company shares available for public trading
- Demonstrate historic revenue (on a compound annual growth basis) of 20% over three years.
What does it mean for a listing on an AQSE?
- Known as Aquis Stock Exchange Growth market.
- An alternative route to admission to the official list in the UK
- Eligibility is same as the official list.
- Companies can choose either a premium or standard listing.
- AQSE also operates the AQSE growth market.
What is the admission criteria for a listing on the AQSE Growth Market?
- A point and retain an AQSE corporate advisor
- Have at least 24 months of audited accounts.
- At least 10% free float (10% company shares in public hands)
- Demonstrate appropriate levels of corporate governance, including having at least one independent non-executive director.
