Official List: Flotations overview
Corporate finance training
Corporate finance training programmes
Official List: Documentation for flotations
AIM: Flotation: overview
AIM: Documentation for flotations
Prospectuses: drafting

An explanation of course levels:

• Introductory: for those new to the subject.

• Intermediate: for delegates with some prior knowledge of the subject.

• Advanced: for delegates with substantial knowledge of the subject.

• Update: for delegates with or without prior knowledge of the subject.

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Flotations

Official List: Flotations overview

An introductory course providing an overview of the benefits and implications of admission to the Official List and the process involved.

CPD: 6 hours

Level: introductory

OBJECTIVES

This course is designed for professionals who require knowledge of the statutory and regulatory structure governing initial public offerings. It provides an overview of the process of a flotation for a company applying to the Official List.

Participants should understand the reasons for companies seeking a listing, the roles of the parties involved, the relevant law and regulation, the process and documents which will be required.

COURSE OUTLINE

Part 1. Background to the regulation of public offers

• The legal and regulatory regimes affecting flotations: FSMA, the Listing Rules, Disclosure and Transparency Rules and Prospectus Rules.
• The functions of the Financial Services Authority and the London Stock Exchange.
• Relevant markets for the trading of listed securities.
• Premium and standard listing on the Official List.
• The role of CREST in relation to issues and transfers of securities.
• The role of a company’s sponsor and other advisers on a listing.

Part 2. Considering listing: reasons for flotation and eligibility requirements

• The reasons a company may seek admission of its securities to a stock market.
• The advantages and disadvantages for a company of having its securities publicly traded.
• The eligibility requirements which apply to admission to the Official List and the main market.
• The principal continuing obligations to which the company and its directors will be subject.

Part 3. Preparation for flotation: liabilities

• The potential liabilities arising in connection with the preparation and publication of a prospectus:
  • The relevance of those liabilities in practice.
  • What needs to be included in the directors’ memorandum.

Part 4. Preparation for flotation: due diligence

• What is involved in the due diligence process.
• What will the due diligence report cover and who will it be addressed to.
• The standard to be applied in doing due diligence.
• Other action which needs to be taken in preparation for listing.

Part 5. Procedure for listing

• Who prepares what and when?
• What public announcements will be made?
• The timetable and process for listing.
• Application for approval of the prospectus.
• Signing, pricing, impact day.
• Applications for listing and trading.

Part 6. Methods of flotation, underwriting and marketing

• The methods of obtaining a listing or admission of securities to trading on a stock exchange.
• Factors influencing the choice.
• The reasons for underwriting, underwriting structures, the main provisions of underwriting agreements and bookbuilding.
• Research reports and the marketing of the offer.
• Financial promotions.

Part 7. The prospectus: preparation and verification

• The law and regulation governing when a prospectus needs to be prepared;
• The relevant exemptions from the requirement to prepare a prospectus;
• The circumstances when a supplementary prospectus is required to be published;
• The contents requirements for a prospectus.
• What is involved in a verification exercise.