Julia Charlton moderated a virtual roundtable on Listing in London with great speakers and panellists Tom Attenborough & Jon Edwards of the London Stock Exchange, Andrew Collins & Victoria Younghusband of CRSB & Giles Rolls of Finncap on 26 March 2021.
£5.2 trillion of value with over £125 billion raised since 2018
Source: LSEG, Dealogic, February 2021
*IPOs raising more than £500m
Europe’s Most Active Equity Market
$65.6bn has been raised in London through IPOs & FOs in 2020
London was the most active equity market in Europe in 2020, with:
2.7x more transactions (635 IPOs & FOs) than the next most active exchange, Stockholm (231 IPOs & FOs)
2.8x more in IPO and FO proceeds ($65.6bn) than the next exchange, Frankfurt ($23.3bn)
Source: Dealogic, January 2021
All calculations are based on a deal pricing date
A Globally Diverse Investment Base
Gain access to the most internationally diverse pool of investment
Domicile of Top investors in listed securities in London*
46% UK
33% North America
15% Europe (ex UK)
6% Rest of W orld
London has the most diverse investor base of any major global exchange, while still allowing issuers to access US institutional investors.
This allows issuers access to a pool of capital that is comfortable with companies who build internationally facing business models.
Domicile of Top investors in listed securities in the US*
85% North America
6% UK
6% Europe (ex UK)
3%
Rest of World
Largest Institutions Investing in LSE Listed Stock
Investor Country
BlackRockInvestmentManagement(UK)Ltd.
United Kingdom
The Vanguard Group, Inc.
United States
Norges BankInvestmentManagement
Norway
BlackRock Fund Advisors
United States
CapitalResearch&ManagementCo.
United States
SchroderInvestmentManagementLtd.
United Kingdom
Source: FactSet, February 2021
*Based on the Value of Securities Held
The Home of International Issuers
More international companies choose London for listing
Source: London Stock Exchange, FactSet, March 2021
Note: Chart data as of January 2021. Exchanges w ith fewer than 250 companies listed are excluded. *1530 (60%) of HKSE companies are Chinese — International companies are those where the country of primary business of a company is not equal to the country of its primary listing. Our country of primary business methodology uses FactSet data and takes into account the country of largest revenue exposure, headquarters and incorporation
Significant Increase in New Issues
Landmark deals since the start of 2021
Source: LSE, company w ebsite, Dealogic, FactSet, March 2021
A Partnership with Asia Pacific Corporates
Overview of companies listed on LSE
Source: LSE statistics, Dealogic, February 2021
* Countries defined by country of primary business (i.e. primary HQ / revenue / operations) Note: Money raised fromboth IPO and FO are included.
Supporting Chinese Growth
Key access points for Chinese companies across LSEG
Huatai Securities, the inaugural Stock Connect issuer opening the London market, 17 June 2019
FTSE Russell leadership celebrating the inclusion of China A shares in global indexes, July 2019
ICBC celebrating their £600m bond in July 2019, the first ever Chinese bank to issue a sterling denominated bond
Nikhil Rathi, CEO LSE Plc meets President Xi Jinping, October 2015
Going Public in London
LSE offers four key options to suit companies with different needs
Premium Main Market
Standart Main Market
Hight Growth Segment
AIM
Usedby
Companies that want to adhere and benefit from some of the most robust listing requirements and corporate governance standards in the world.
Companies looking to access London’s investor base and liquiditywhilst complying with baseline regulatoryrequirements found across international markets.
Younger, high-growth companies that aspire to be on the Premium segment but do not qualify for all of the listing criteria (e.g. free float).
Smaller and growing companies looking to make an early transition from private to public on a market with a flexible regulatory framework.
Benefits
Offersinvestorsthepathofleast resistance – segment attracts the broadest set of domestic and international investors
Index inclusion (e.g. FTSE 100, 250, 350, All Share) w here eligible
Clear expectations around disclosure of transactions – class tests / votes
Disclosure based regime – no prescriptive eligibility requirements
Flexibility in choice of corporate governance code
Easier M&A – less prescriptive transactional requirements
Dual class shares permitted
10% vs. 25% free float requirement w ith a value of at least £30m(1)
Min market cap. of £300m (based on 10%freefloat)atadmission(2)
3-year revenue CAGR of at least 20% (3)
Flexibility in corporate governance code choice
Dual class shares permitted
Nostampduty
Nomad to guide applicants through admission and ongoing requirements
No prescriptive free float or financial history requirements
Flexibility in corporate governance code choice
Index inclusion (FTSE AIM series) w here eligible
Various tax benefits for founders and shareholders alike
Note: (1) (majority of which must be raised at IPO. (2) Smaller companies with a higher f ree f loat are permitted to use HGS. (3) Based on audited rev enue f or the last f our y ears
Tom Attenborough
Head of International Primary Markets
London Stock Exchange Plc
+44 20 7797 3747
tom.attenborough@lseg.com
Zhu Liu
Vice President, Primary Markets
Zhu.Liu@lseg.com
Hong Kong
Jon Edwards
Chief Representative, Beijing Office
London Stock Exchange Plc
+86 10 5811 1911
jon,edwards@lseg.com
Sally Tang
Beijing Representative Office,
Primary Markets
Sally.Tang@lseg.com
Beijing
Ollie Fox
Business Development, Primary Markets, South East Asia
London Stock Exchange Plc
+65 8740 6567
ollie.fox@lseg.com
Singapore
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