1 / 19

Equity financing alternatives for Russian companies on the London Stock Exchange October 20, 2006

Equity financing alternatives for Russian companies on the London Stock Exchange October 20, 2006. Liquidity Increasing and maintaining liquidity. Company growth. Capital Raising it efficiently & effectively when required. Profile Maximising marketing/PR opportunities. Growth.

Download Presentation

Equity financing alternatives for Russian companies on the London Stock Exchange October 20, 2006

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript


  1. Equity financing alternatives for Russian companies on the London Stock Exchange October 20, 2006

  2. Liquidity Increasing and maintaining liquidity Company growth Capital Raising it efficiently & effectively when required Profile Maximising marketing/PR opportunities Growth Independent Market Expertise Recommendations on how to maximise the value of joining a London market The LSE supports customers in maximising shareholder value through supporting capital raising and generating liquidity whilst maximising opportunities from their increased profile

  3. Volume of Assets Managedin Financial Centres, 2005 Fund management activities in the UK are concentrated in a single location (London) rather than geographically spread of different centres Source: Big Dough, Hemscott (September 2005)

  4. Cost of Capital in London: Oxera Research Oxera’s new analysis confirms that the findings of the 2003 Torstila study continue to apply now. The Oxera analysis is based on a sample of all IPOs on the LSE, NYSE, Nasdaq, Euronext and Deutsche Boerse during the period from January 1st 2003 to June 30th 2005, for which underwriting fee data was available in Bloomberg. The gross spreads of IPOs on the US exchanges are found to be the highest, averaging 6.5% for the NYSE sample and 7% for Nasdaq IPOs. In comparison, median spreads of IPOs on the LSE’s Main Market are 3.25% and those on AIM somewhat higher at 4%. Source: The Cost of Capital - An International Comparison, June 2006

  5. London continues to attract int’l companies Source: London Stock Exchange, August 2006

  6. International IPOs in London, 2005 In 2005, 17 Int’l Companies raised approximately $8 billion in London Source: London Stock Exchange, August 2006

  7. International IPOsin London, 2006 YTD In the first eight months of 2006, 10 Int’l companies have raised over $12 billion in London Source: London Stock Exchange, August 2006

  8. Top 10 companies traded on IOB – Jan-Jul’06 Source: London Stock Exchange trade statistics

  9. Case Study: London – a leader in international trading Main Market (London listed, DR issuer) London listing (regulated) Professional Securities Market (exchange regulated) IOB (U) IOB In 2005, IOB total trading turnover was $131bln and in the 7 MNTHS 2006 of $172bln. Source: London Stock Exchange - July 2006

  10. Rosneft ownership structure Demand split Russian government viaRosneftegaz 100% • Retail 4% • Strategic 21% Other free float 13% Consolidation minorities 12% • Russia instl • 39% Rosneftegaz 75% • Intl institutional • 36% Post-IPO Pre-IPO Rosneft: 30/70 in Action • Shares Sold: Ordinary Shares (~41%) & GDRs (~59%) • Offer Size: $10.4 Billion (pre-Green Shoe) and $10.6 billion • Post IPO Market Cap: $80.2 Billion Source: JP Morgan

  11. Regulation by the LSE • No trading record required • No minimum amount of shares to be in public hands • In most cases, no prior shareholder approval required for transactions • Normally, admission documents not pre-vetted by Exchange or UKLA but by nominated adviser • Nominated adviser required at all times Key differences between our markets • Pre-vetting of admission documents by the UKLA • Compliance required with the rules of the UKLA • Normally a three-year trading record required • Minimum of 25% shares in public hands • Prior shareholders approval for certain transactions • Sponsors needed for certain transactions Main Market

  12. 2006 – A Record Year for Capital Raised* Source: London Stock Exchange, September 2006, *Includes further capital raises

  13. 2006 – 199 IPOs have raised close to $11 Billion Source: London Stock Exchange, September 2006

  14. 2006 – Top 10 Sectors By IPO Capital Raised Source: London Stock Exchange, September 2006

  15. Russian Assets on AIM – A Sizeable Peer Group Source: London Stock Exchange, August 2006

  16. Access to Capital - both at IPO and after Source: London Stock Exchange, August 2006

  17. AIM Supports Growth Companies 13 Months 11 Months 14 Months Source: London Stock Exchange Statistics, September 25, 2006

  18. IPO Process Legal reports and negotiations Cost Structure (AIM) Law Firm Law Firm Total costs to raise £50m, Excluding value of options: ( NOMAD’s ) (Corporate) £2,500K - £5,000K 5% - 10% Overall costs range: £150K - £300K, Of which NOMAD’s £150K - £200K Prospectus Lawyers get 25% - 40% plus Short - form 1% of the firm Preparation report NOMAD Reporting Company Accountants Underwriting and £100K - £150K Technology analytical coverage Experts Broker 3 - 5% of £25K - £50K £10K the deal, plus 1% of the firm Listing and trading Services Public Relations and Investor Relations Stock Exchange: AIM Independent PR firms Researchers LHC CREST Co Registrar Source: Oxford Said Business School MBA Project, August 2006 as amended by London Stock Exchange

  19. Contact Details WWW.LONDONSTOCKEXCHANGE.COM/RU/AIM Jon Edwards Senior Manager, CIS Desk +44(20) 7797-1599 jedwards@londonstockexchange.com

More Related