Established in 1698, the London Stock Exchange’s (the ‘Exchange’) Main Market has long been home to some of the UK’s, and indeed the world’s, largest and best-known companies. There are over 1,400 companies on the Main Market with a combined market capitalization of £3.7 trillion.

Companies of all types, nationalities and sizes together represent some 40 sectors. As well as sectoral and geographical diversity, the Main Market accommodates the admission to trading of companies with a Premium Listing or a Standard Listing.

London Stock Exchange Markets

Main Market: The Main Market is the LSE's flagship market, regulated by the UK Listing Authority (UKLA). A company can list on the Main Market in either the Premium Segment or the Standard Segment. These are the Financial Services Authority (FSA) listing categories that have been designed to help clarify the regulatory standards that apply to a listing on the Main Market. For a premium listing, the company must appoint a sponsor to provide declarations to the FSA as part of the IPO process. Diligence reports will also be required from a reporting accountant.

PRIVATE PLACEMENT MARKETS is associated with a London Stock Exchange Sponsor.

Premium Listing: Only available to equity shares and closed- and open-ended investment entities. Issuers with a premium listing are required to meet the UK’s Listing Rules, which are more onerous than the EU minimum requirements. A company with a premium listing is expected to meet the UK’s highest standards of regulation and corporate governance.

Standard Listing: Standard listings cover issuance of shares, Global Depositary Receipts (GDRs), debt and securitized derivatives that are required to comply with EU minimum requirements. A standard listing allows issuers to access the Main Market by meeting EU harmonized standards only, rather than the additional UK requirements.

  • Premium listed and standard equities are traded on the LSE’s SETS trading platform.

  • Standard listed depositary receipts are traded on the LSE International Order Book (IOB) platform.

London AIM Market

AIM is the LSE’s market for smaller, growing companies. The market has a simplified regulatory environment which has been specifically designed for the needs of small and emerging companies. AIM is an exchange regulated market. Companies wishing to join AIM must comply with the Exchange’s AIM Rules. Companies applying to AIM must appoint and retain a Nominated Adviser (NOMAD) to guide them through the admission process and to advise them subsequently as a public company. The NOMAD must be registered with the Exchange.

PRIVATE PLACEMENT MARKETS is associated with a NOMAD. 

The AIM Rules for Companies set out the requirements and guidance for companies quoted or wishing to be quoted on AIM. The admission document requirements are based on the FSA's Prospectus Rules with certain (optional) exclusions. Admission documents relating to a public offer in the UK will need to follow the FSA's Prospectus Rules and require the approval of the FSA. Certain tax incentives are available to individual and corporate investors and enhance the attractiveness of investing in AIM companies.

Professional Securities Market (PSM)

The PSM is a specialist exchange regulated market designed to suit the specific needs of companies looking to raise capital through the issue of specialist debt securities or depositary receipts (DRs) to professional investors. Listing on this market may avoid the need for financial information to be converted to IFRS or an equivalent GAAP.

Specialist Fund Market (SFM)

The SFM is an EU regulated market for specialist investment funds and specialist property funds (including private equity funds, hedge funds, feeder funds (both single and multi-strategy), specialist geographical funds, funds with sophisticated structures or security types), targeting sophisticated investors.

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LISTING REQUIREMENTS:

Main Market Premium:

  • Sponsor: Required

  • Admission Document: Prospectus vetted and approved by the UKLA

  • FTSE Index Inclusion: Subject to eligibility if not a UK plc

  • Minimum % Free Float: 25% of shares in public hands

  • Minimum Market Capitalization: $700,000 Euro

  • Control of Assets: Control over the majority of assets for 3 year period

  • Revenue Track Record: 

    • ​At least 75% of the business must be supported by a revenue earning track record for 3 year period

    • Some exemptions apply to mineral and scientific research based companies

  • Financial Track Record:​

    • ​3 years of audited accounts with unqualified audit opinions

    • No more than 6 months old audited financial information (including interim information if appropriate)

  • Accounting Standards:​

    • ​EU IFRS or other approved GAAPs for non-EEA issuers

    • At a minimum, the last 2 years financial information must be restated on the basis to be applied in the issuer’s next annual accounts

  • Other Eligibility Requirements:​

    • ​Confirmation that adequate financial reporting procedures are in place

    • Statement that the issuer has sufficient working capital for at least the next 12 months from the date of prospectus

    • Pro forma information, reported by an accountant, required if there has been a significant change

  • Financial Due Diligence:​

    • ​Normally required by the sponsor:

      • ​Long form report

      • Financial reporting procedures report

      • Working capital report

Main Market Standard:

  • Sponsor: No Requirements

  • Admission Document: Prospectus vetted and approved by the UKLA

  • FTSE Index Inclusion: Not Permitted

  • Minimum % Free Float: 

    • Equity Shares: ​25% of shares in public hands

    • GDRs: 25% of GDRs (not underlying shares) in public hands

  • Minimum Market Capitalization: $700,000 Euro

  • Control of Assets: No Requirements

  • Revenue Track Record: No Requirements

  • Financial Track Record:​

    • ​3 years of audited accounts (or shorter period since incorporation)

    • No more than 9 months old audited accounts, otherwise interim financial information (which may be unaudited) required

  • Accounting Standards:​

    • ​EU IFRS or other approved GAAPs for non-EEA issuers

    • At a minimum, the last 2 years financial information must be restated on the basis to be applied in the issuer’s next annual accounts

  • Other Eligibility Requirements:​

    • ​Pro forma financial information is not required, but generally is presented if there has been a significant change. If presented voluntary, must be reported on by an accountant

  • Financial Due Diligence:​ ​​Depends on the requirements of underwriters

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AIM Market:

  • Sponsor: Nominated advisor (NOMAD) required at all times

  • Admission Document: Not vetted by the Exchange. The FSA will vet an AIM admission document where it is also a prospectus under the Prospectus Directive

  • FTSE Index Inclusion: Not Permitted

  • Minimum % Free Float: No Requirements

  • Minimum Market Capitalization: No Requirements

  • Control of Assets: No Requirements

  • Revenue Track Record: No Requirements

  • Financial Track Record:​

    • ​3 years of audited accounts (or shorter period since incorporation)

    • No more than 9 months old audited accounts, otherwise interim financial information (which may be unaudited) required

  • Accounting Standards:​

    • EU IFRS or other approved GAAPs for non-EEA and Channel Island issuers or national GAAP with reconciliation to one of the approved standards

  • Other Eligibility Requirements:​

    • ​Confirmation that adequate financial reporting procedures are in place

    • Statement that the issuer has sufficient working capital for at least the next 12 months from the date of admission

    • Pro forma information not required, but generally presented if there has been a significant change

  • Financial Due Diligence:​ ​​

    • ​Normally required by the sponsor:

      • Long form report

      • Financial reporting procedures report

      • Working capital report

Mr. Steve Muehler

Founder & Managing Member

Private Placement Markets

101 California Street

San Francisco, CA 94111

Email: Steve@PPMSecurities.com

Phone: (877) 259-8066

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Private Placement Markets, LLC (a Delaware Limited Liability Company) provides no depository services and is not insured by the FDIC. Private Placement Markets is an Investment Banking Industry Document Preparation Company and Capital Markets Advisor. Private Placement Markets does not offer, and does not offer to provide any broker dealer or market maker services. Private Placement Markets operates this website (referred to as the “Website”). By accessing this Website and any pages thereof, you agree to be bound by its Terms of Use and Privacy Policy. Past performance is no guarantee of future results. Any historical returns, expected returns, or probability projections may not reflect actual future performance. Private Placement Markets does not provide financial planning services. Private Placement Markets does not provide tax advice and does not represent in any manner that the outcomes described herein will result in any particular tax consequence.

 

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