Presentation by Lucy Tarleton, London Stock Exchange

1. Lucy Tarleton
London Stock Exchange
AIM for Growth

2. AIM for Growth
November 2013

3. Why list on LSE
Access to deepest pool of international capital in the world
Proven levels of sustained liquidity
Access to incremental research coverage
An exit route for earlier stage investors
Ability to incentivise key employees’ commitment
Significantly enhanced profile & visibility, particularly with customers & suppliers
Currency to fund business acquisitions & expand into new markets
3

4. Overview of London New Issue Markets
2012
2012
YTD
2013 YTD
Money
raised (IPO)
(£bn)
2012
2012 YTD
2013 YTD
Main Market
24
17
31
Main Market
6.8
5.0
AIM
43
33
41
AIM
0.6
Total
67
50
72
Total
7.4
Follow on
Issues (£bn)
2012
2012
YTD
2013
YTD
8.8
Main Market
11.1
9.3
22.1
0.4
0.7
AIM
2.4
1.9
1.9
5.4
9.5
Total
13.5
11.2
24.0
45
40
35
30
25
20
15
10
5
0
60
40
30
20
Vix index
50
10
2004
2005
2006
2007
2008
Further issues
2009
New issues
2010
2011
2012
Q3
October
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
Q1
Q4
Q3
Q2
0
Q1
Deal value in £bn
Number of
IPOs
2013
VFTSE
Source: Bloomberg and Dealogic, as of 31 October 2013
4

5. A choice of routes to market, ultimately
dependent on company's stage of
development, size & strategy
Not public
Funding requirement
Market
designation
Exchange regulated
EU Regulated
Official List & EU Regulated
£1bn
£150m
£1m
£500k
£100k
£50k
Concept &
seed stage
Start - Up
Early Stage
Expansion
Consolidation &
further capital raising
Diversification of investors, M&A
and International Expansion
Strategic consideration
5

6. AIM is the leading market for growing companies
aspiring to become larger global businesses
Profile of AIM companies
Admissions to AIM – 1995 to Sept 2013
228
179
132
133
519
1,090
1,090
companies, aggreg
companies, aggreg
ate value of £69bn
ate value of £69bn
142
UK
International
355
177
123
40
2 - 5m
5 - 10m 10 - 25m 25 - 50m 50 - 100m
Market value range £m
100 250m
145
107
250 500m
500 1,000m
Over
1,000m
Fundraisings on AIM – 1995 to Sept 2013
Money raised £bn
114
102
90
71
66
36
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
to
Sep
Sectors represented – by number of companies
Technology, 110
18
12
162
7
NB: Bar chart excludes 12 unvalued companies and 23 suspended
14
160
102
75
11
16
284
277
94
89
0 - 2m
Over 3,400
companies raising
£36bn at admission
462
Oil & Gas, 133
£82bn in total
(£46bn through
further issues)
New
Further
Financials, 218
Basic
Materials, 178
10
8
Utilities, 15
6
4
Telecommunicati
ons, 12
2
Industrials, 194
Consumer
Services, 101
0
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 to Sep
2013
Health Care, 67
Consumer
Goods, 62
Source: London Stock Exchange Statistics
6

7. The benefits of the AIM network
Access
to
capital
Diverse & deep
pool of capital
Strong support
from institutions
Wide
support
network
Nominated advisers
Accountants
Lawyers
Banks/Brokers
Analysts
Financial PR / IR
Media
Profile
Visibility
Bargaining power with
customers & suppliers
Marketability of stock
Global peer group
7

8. Understanding the AIM admission process &
associated costs
AIM pre-admission
announcement
(10 days prior to
admission)
Informal
discussions
& fact
finding
Appoint a
nominated
adviser
Review of
corporate
structure, g
overnance
& Board
Due
diligence &
drafting of
admission
document
Investor
discussions
& placing
agreements
Placing
finalised &
completion
meeting
IPO
THE START
OF THE
JOURNEY
Costs of IPO
Advisory & due diligence
These include nomad, reporting accountants, lawyers and other due diligence costs. They are mainly dependent on complexity
of the business & sector, but can be significantly higher for the Main Market due to legal costs of producing a Prospectus
approved by the UKLA
Exchange fees
Incremental based on company’s market value
Broker commission
Actual % depends on the quantum & can be affected by sector and complexity of deal
Ongoing compliance – can vary with corporate activity
Nomad/Corporate adviser
Similar for AIM & Main Market companies – as Main Market companies usually retain a corporate adviser
Auditors
•
•
Internal Costs
Include corporate governance costs including non-executive directors as well as increased public relations & investor relations
efforts
Other
Include exchange fees, registrars, website, AGMs etc
Similar for comparable companies on AIM & the Main Market
Can vary dependent on complexity of the business
Fees may vary significantly depending on the size, complexity and sector of a company.
8

9. Liquidity and investors
Avg daily value traded as % of total
mkt cap
AIM companies have comparable levels of daily liquidity to their Main Market peers
Number of companies in each index and market cap group
Market cap Range
AIM All Share
FTSE AIM All
Share
FTSE All Small
£0-25m
£25-100m
£100-500m
£500m+
Total
0.20%
440
241
114
13
808
47
109
210
6
372
FTSE All Small
0.15%
0.10%
0.05%
0.00%
£0-25m
£25-100m
£100-500m
£500m+
Market cap group
*NB: The FTSE All-Small Index consists of all the companies in the FTSE SmallCap and FTSE Fledging indices
• AIM companies are supported by a deep
pool of institutional capital, as well as an
active retail investor base
140
130
120
• There is a dedicated network of market
professionals (brokers, research
analysts, advisors)
110
100
90
• The FTSE AIM 50 (which includes the 50
largest UK AIM companies) is the best
performing UK index this year
80
31-Dec-12
31-Mar-13
FTSE AIM All Share
1-Jul-13
FTSE AIM 50
FTSE 100
FTSE All-Share
Source: Liquidity data from Bloomberg -Time period analysed is the 6 month beginning March to August 2013. Analysis shows median within each
market cap range.
9

10. Technology companies on our markets
Sector
AIM
Main Market
Electronic & Electrical Equipment
33
19
Fixed Line Telecommunications
4
17
Health Care Equipment & Services
28
11
Mobile Telecommunications
8
9
Pharmaceuticals & Biotechnology
39
17
Software & Computer Services
91
26
Tech Hardware & Equipment
19
20
Total
222
119
Total market cap (£bn)
14.5
653.6
Total raised (£bn)
3.3
13.0
• There are currently 341 companies in automatically
qualifying tech sectors worth a combined £700bn.
• Recent IPOs have been from innovative, fast growing
companies including the likes of: Plus500 (£50m),
CentralNic (£7m), NetScientific (£30m), Outsourcery plc,
(£11m) Cambridge Cognition Holdings (£11m), Keywords
(£28m), Wandisco (£15m) and RapidCloud international
(£1m.)
• Total capital raised across the technology sector on AIM
and the Main Market to date is over £16bn.
Market cap profile of technology companies on our markets
£0-£100m
£100-£500m
£500m +
183
AIM
34
5
40
Main Market
22
57
Figures do not include PSM and SFM. September 2013. Based on country of domicile. Source: London Stock Exchange statistics.
10

11. Recent activity on AIM
AIM
Money raised: GBP 11m
A UK based cloud computing and unified communications provider
May 2013
AIM
Money raised: GBP 5m
Develops and commercialises computerised neuropsychological tests for
sale worldwide, principally in the United Kingdom
April 2013
AIM
Money raised: GBP 8m
Oregon USA-based medical device company that designs, develops and
commercialises a range of non-invasive neurodiagnostic products.
April 2013
AIM
Money raised: GBP 1.53m
Develops, markets and sells a physiological monitoring technology to the
professional sports, consumer wellbeing and weight-loss markets
March 2013
AIM
Money raised: GBP 2.5m
A UK based supplier of advanced testing systems to the global motor
industry for research and development and for production quality control.
May 2013
AIM
Money raised: GBP 15m
A virology healthcare business that provides clinical services
May 2012
AIM
Money raised: GBP 15m
A provider of software for global enterprises to meet the needs of Big Data
and distributed software development
July 2012
AIM
Money raised: GBP 6.03m
Venn Life Sciences is a full-service clinical research and development
organisation
December 2012
11

12. Strong technology support in London
300
FTSE Tech Index performance vs global benchmarks
Diversity of investors in London listed
technology companies
250
Europe
10%
200
North
America
25%
150
Asia Pacific
3%
100
UK
62%
50
Middle East
and Africa
0.3%
0
Oct-09 Feb-10 Jun-10 Oct-10 Feb-11 Jun-11 Oct-11 Feb-12 Jun-12 Oct-12 Feb-13 Jun-13
FTSE AIM All Share
S&P North American Technology
Nasdaq Composite Index
FTSE All Share technology
FTSE All Share
S&P 500 Information Technology
•
FTSE tech indices continue to outperform their global peers
•
UK tech investors are geographically diversified and are supported by an experienced advisory and analyst community
Source: Bloomberg and London Stock Exchange. October 2013. Based on country of domicile.
12

13. Case studies

14. Case Study:
Asos
Transaction Details
Company Details
ASOS
Admission Date
3 Oct 2001
Market
AIM
Money raised at
admission
£0.3m
Sector
Apparel Retailers
Company
Trading System
Ticker
SETS
ASC
Country of
incorporation
UK
Company profile
 ASOS is a global online fashion and beauty
retailer and offers over 65,000 branded and
own label product lines across womenswear,
menswear, footwear, accessories, jewellery
and beauty. It is the UK’s largest online-only
fashion and beauty store.
 ASOS has websites targeting the UK, USA,
France, Germany, Spain, Italy, Australia and
Russia also ships to 237 other countries from
its central distribution centre in the UK.
 ASOS attracts 21.3 million unique visitors a
month and as at 31 August 2013 had 13.2
million registered users and 7.1 million active
customers.
1,400
ASOS vs FTSE AIM All Share rebased at 100
1,200
1,000
800
Market cap at
admission
£12.32m
Current Market cap
£4,896 m
200
JPMorgan
Cazenove
0
NOMAD/Broker
600
400
Listing story
 Admitted to AIM in October 2001 raising
£300k and with a market capitalisation of
£12m.
 Currently one of the fastest growing UK
online retailers and also one of the biggest
companies on AIM by market cap at over
£3bn.
 comScore rankings for 15-34 year olds in
2012 showed ASOS as the most visited
fashion website daily.
 At the time ASOS joined AIM in 2001, the
company had revenues of less than £1m and
was loss making. In 2012, the company
recorded strong profits and posted revenues
of £495m
Jun-08
Jun-09
Jun-10
ASOS PLC
Jun-11
Jun-12
Jun-13
FTSE AIM All Share
Leading Investors
Value held
USD millions
Baillie Gifford & Co.
265.7
Standard Life Investments Ltd.
265.0
Capital Research & Management Co. (Glob...
220.9
OppenheimerFunds, Inc.
107.1
Fidelity Management & Research Co.
90.7
William Blair & Co. LLC (Investment Man...
56.9
FIL Investments International
56.6
Robeco Institutional Asset Management BV
50.4
Hargreave Hale Ltd.
48.6
Source: FactSet and LSE Trading data, November 2013
14

15. Case Study:
WANdisco
Transaction Details
Company Details
Company
700
WANdisco plc
Admission date:
1 June 2012
Market
AIM
£15m
500
Sector
Software &
Computer Services
Money raised at
admission
WANdisco vs FTSE AIM All Share
600
Trading system
SETSqx
Ticker
WAND
Country of
incorporation
UK
400
Market cap at
admission
Current Market cap
£288.9m
Nominated Adviser
and Broker
Panmure
Gordon
300
200
100
0
Jun-2012
Company profile
 WANdisco is a leading provider of global
collaboration software to the software
development industry. The company is
headquartered in Sheffield, UK, with significant
operations in Silicon Valley, California
 WANdisco’s differentiated patent-pending
technology, the Distributed Coordinated
Engine, provides a cost-effective method to
maintain continued synchronisation between
geographically distributed servers. This
technology in conjunction with “Subversion”, an
open source version control system, allows
software developers at globally distributed sites
to access the same program data at all times.
 Revenue increased by 30%, from USD3.0 m in
2010 to $3.9million in 2011
£37m
Listing story
 WANdisco’s IPO was almost four times
oversubscribed
 WANdisco plc planned to use the net
proceeds of the placing on opening an office
in China, further product
development, reducing current level of
provisions and other payables and
potentially on complementary technology
acquisitions.
 WANdisco completed a £19m equity placing
in September 2013 from existing and new
shareholders.
Oct-2012
WANdisco
Feb-2013
Jun-2013
Oct-2013
FTSE AIM All Share Index
Leading Investors
Value held $m
Cazenove Capital Management Ltd.
40.5
Legal & General Investment Management
20.2
Artemis Investment Management LLP
14.0
BlackRock Investment Management (UK)
13.2
Hargreave Hale Ltd.
12.4
Octopus Investments Ltd.
10.6
M&G Investment Management Ltd.
8.7
Credit Suisse Securities Europe
7.9
Old Mutual Global Investors (UK) Ltd.
6.8
J.O. Hambro Capital Management Ltd.
5.8
Source: Bloomberg, FactSet and LSE Trading data, November 2013
15

16. Case Study:
blur Group
Transaction Details
Company Details
blur Group
First Trading Day
5 Oct 2012
Market
AIM
Money raised at
admission
£4.0m
Sector
Software &
Computer Services
Market cap at admission
£20.1m
Ticker
BLUR
Current market cap
£133.8m
Company
Country of
incorporation
UK
NOMAD/Broker
Further money raised
N+1 Singer
£7.6m
Company profile
Listing story
 blur Group owns and operates the online
Global Services Exchange at blurgroup.com
where businesses buy, sell and pay for
business services, including
marketing, design, advertising and technology
 blur Group joined the market in October
2012, the proceeds were predominantly used
for technology development growth of their
corporate sales teams
230
210
190
170
150
130
110
90
70
50
Blur group vs FSTE AIM All Share rebased at 100
Oct-12
Dec-12
blur Group
Feb-13
Apr-13
Jun-13
FTSE AIM All Share Index
Investor Name
Value held in
USD millions
 In 2012 it received its 1,000th brief and now
has over 20,000 experts from over 130
countries
 Since IPO, the Company’s share enjoyed a
significant increase in value over 90%
6.0
Octopus Investments Ltd.
1.8
Kames Capital Plc
1.5
Cheviot Asset Management Ltd.
1.4
Barclays Bank Plc (Private Banking)
0.8
Herald Investment Management Ltd.
0.7
Brewin Dolphin Ltd.
KBL European Private Bankers
Luxembourg SA
Walker Crips Stockbrokers Ltd.
0.4
TD Direct Investing (Europe) Ltd.
 Making use of cloud technologies and expert
sourcing techniques, it started building expert
crowds in 2007 and formally launched in 2010
 On 31st May 2013, blur Group raised an
additional £7.6m through an oversubscribed
further offering
Majedie Asset Management Ltd.
0.2
0.4
0.4
Source: FactSet and LSE Trading data, November 2013
16

17. Case Study:
Retroscreen Virology
Transaction Details
Company Details
Retroscreen
Virology
Admission Date
Market
AIM
Money raised at
admission
Sector
Pharmaceuticals
& Biotechnology
Company
Trading system
SETSqx
Ticker
RVG
Country of
incorporation
UK
Company profile
 Retroscreen Virology is a virology healthcare
business that provides clinical services
 The company is focused on the Viral
Challenge Model and pre-clinical analytical
services primarily to large, global
pharmaceutical companies and biotechnology
organizations
 Retroscreen Virology has developed a
business system with two primary units. The
first is a Clinical Services business built around
Human Viral Challenge Model and the second
is a Translational Research (Pre-Clinical)
business, built around in-house expertise on
testing antivirals and virucidals in-vitro
03 May 2012
450
400
350
£14m
300
250
Market cap at
admission
£32.8m
Current Market cap
£170.6m
200
150
100
50
Nominated Adviser and
Broker
Numis
Securities ltd
Listing story
 Retroscreen Virology is a portfolio company
of IP Group plc. IP Group and IP Venture
Fund each committed £1.5million and £0.5
million to the placing
 Retroscreen Virology was admitted to AIM in
May 2012, and successfully raised £14m
 The company plans to use the net proceeds
of the placing to expand the VCM into
adjacent and sizeable markets, for example
asthma and COPD
 Since admission to AIM, the company’s
share price has been growing at a steady
rate, reaching £3.06 in May 2013
0
May-12
Aug-12
Nov-12
Feb-13
RESTROSCREEN VIROLOGY plc
Investor Name
May-13
Aug-13
FTSE AIM All Share
Value held in
GBP millions
Invesco Asset Management Ltd.
43.4
Ruffer LLP
9.4
Sand Aire Ltd.
8.1
Lansdowne Partners Ltd.
6.9
Henderson Global Investors Ltd.
6.5
Baillie Gifford & Co.
Legal & General Investment
Management Ltd.
4.3
0.8
Source: Factset, Bloomberg, September 2013
17

18. Case Study:
Abcam
Company Details
Abcam
Admission date:
AIM
Money raised at
admission
£15.3m
Pharmaceuticals
and Biotechnology
Market cap at AIM
admission
£57.5m
Trading System
SETS
Current Market cap
£945m
Ticker
ABC
1400
03 Nov 2005
Market / Listing
Category
Sector
Country of inc
UK
Company profile
 Abcam plc is a producer and distributor of
research-grade antibodies and associated
products. Founded at the University of
Cambridge in 1998, Abcam revolutionised the
way in which antibodies are categorised and
sold over the internet.
 Abcam now employs over 400 people located
in several offices globally, and has established
itself as one of the leading suppliers of
antibodies to research scientists
Nomad (AIM)
1200
1000
Price
Company
1600
Transaction Details
800
600
400
Numis
Securities Ltd
Listing story
 Abcam was admitted to AIM in 2005 with a
market capitalisation of £57.4m, and raised
£15.3m.
 Abcam has seen it grown into the largest
biotechnology company on AIM and one of
the largest companies with a current market
of £945m
 It’s performance has earned the company a
number of industry awards including AIM
company of the year 2009 at the Annual
Growth Company Awards
200
0
Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12
ABCAM plc
FTSE AIM All Share
Investor Name
BlackRock Investment Management (UK)
Baillie Gifford & Co.
Standard Life Investments Ltd.
William Blair & Co. LLC
Wasatch Advisors, Inc.
T. Rowe Price Associates, Inc.
Kames Capital Plc
Newton Investment Management Ltd.
Columbia Wanger Asset Management LLC
Artemis Investment Management LLP
Value held in
GBP millions
74.0
71.7
56.9
45.9
30.8
30.5
25.6
23.6
19.3
16.4
Source: Factset, Bloomberg, September 2013
18

19. Case Study:
EpiStem Holdings plc
Company Details
Transaction Details
EpiStem Holdings Plc
Admission Date
4 Apr 2007
Market
AIM
£1.8m
Sector
Pharmaceuticals &
Biotechnology
Money raised at
admission
Market cap at
admission
£7.4m
EHP
Current Market cap
£45.5m
UK
Nominated Adviser
and Broker
Teather &
Greenwood ltd
Company
Trading system
Ticker
Country of
incorporation
SETSqx
500
450
400
350
300
250
200
150
100
50
0
Apr-07
Apr-08
Apr-09
EPISTEM plc
Company profile
 EpiStem Holdings Plc joined AIM in April
2007 with an issue price of 1.24p, rising 12%
in the first month.
 The company has used the gross proceeds
raised from the placing to finance further
research and to fund the development of the
Company’s diagnostic platform based on
epithelial stem cell biology
 The companies conducted further offerings in
2009, 2011 and 2012 raising in total £10m.
Apr-11
Apr-12
Apr-13
FTSE AIM All Share
Listing story
 EpiStem Holdings Plc commercializes adult
stem cells in the areas of oncology and
gastrointestinal diseases as well as
cosmeceutical applications.
 EpiStem operates through three business
divisions: Contract Research
Services, Biomarkers and Novel Therapies. The
Contract Research Services division provides
preclinical efficacy testing primarily for drug
development companies. The Biomarkers
division engages in identifying the behaviour of
epithelial cells and drug-induced gene
expression change to measure drug effects
during treatment. The Novel Therapies division
develops innovative therapeutics to late
preclinical stage development.
Apr-10
Investor Name
BlackRock Investment Management (UK)
Odey Asset Management LLP
Investec Asset Management Ltd.
M&G Investment Management Ltd.
Aerion Fund Management Ltd.
Northern Trust Global Investments Ltd.
J. M. Finn & Co. Ltd.
Legal & General Investment Management
Investec Wealth & Investment Ltd.
Hargreave Hale Ltd.
Value held in
GBP millions
4.1
3.1
2.9
2.4
1.3
1.2
1.1
0.8
0.7
0.7
Source: Factset, Bloomberg, September 2013
19

20. Appendices

21. Understanding the different routes to market for
commercial companies
MAIN MARKET
AIM
Premium
Standard
High Growth Segment
AIM
Any
Any
EEA incorporated
Any
EU Regulated Market &
Listed
EU Regulated Market &
Listed
EU Regulated Market
MTF
25%
25%
10% with a min value of
£30m
Assessment of suitability
Revenue criteria
75% of business supported
by revenue earning record of
3 years
n/a
20% CAGR in revenues
over 3 year period
n/a
Admission
Prospectus & Eligibility letter
to UKLA under Listing Rules
Prospectus
Eligibility letter to Exchange
under HGS rules &
Prospectus to UKLA
AIM Admission Document &
Nomad declaration of
suitability
Adviser
Listing Sponsor at admission
& for transactions
n/a
Description
Domicile
Regulation
Minimum free float
Corporate governance
Ongoing obligations
Significant transactions
Cancellation
Indices
UK Corporate Governance
Code
Disclosure & Transparency
Rules
Class tests as per Listing
Rules
Corporate Governance
statement
Disclosure & Transparency
Rules
n/a
75% shareholder approval
No shareholder approval
required
FTSE UK Series, where
eligible
n/a
Key Adviser at admission &
to seek advice for certain
events
Corporate Governance
statement
Disclosure & Transparency
Rules
Class tests as per HGS
rulebook
75% shareholder approval,
unless cancelling to transfer
to Premium
n/a
Nominated Adviser at all
times
Expected market practice &
guidance from Nomad
AIM Rules
Class tests as per AIM rules
75% shareholder approval
FTSE AIM Series, where
eligible
21

22. The AIM framework: admission & ongoing
responsibilities
Key eligibility requirements
• Appointment of nominated adviser
Eligibility criteria
• No minimum track record requirement or free float criteria, but company must demonstrate
appropriateness to join a public market
• Pre-admission announcement at least 10 business days prior to admission
Admission documents
• AIM admission document
Rulebooks
• Nomad declaration of appropriateness
• AIM Rules for Companies and Nominated Advisers
• Adoption of corporate governance measures as appropriate for the business
Corporate governance
• UK Corporate Governance Code / QCA Corporate Governance Code as best practice
Continuing obligations
Adviser
Periodic reporting
Disclosure requirements
• To retain a nominated adviser at all times, failure to do so may result in suspension in the
company’s shares
• Audited Annual Report
• Half yearly financial report
• Price sensitive information to be made public without delay
• Significant shareholder notification
• Directors’ dealings notification
• Company website with up-to-date regulatory information
• Class tests to assess transactions
Corporate transactions
• Notification of substantial transactions, related party transactions
• Shareholder approval for reverse takeovers, fundamental disposals & cancellation
22

23. The AIM framework: understanding the role of the
nominated adviser
AIM companies are supported by a large and highly experienced community of advisers - nomads, brokers to accountants, lawyers,
public relations and investor relations firms. The role of the nomad is the most critical as the AIM rules require every company to
retain a nomad at all times.
•
A company can change its nomad firm as circumstances arise but must retain a nomad throughout its time
on market
Undertakes due diligence to determine whether the company and directors are suitable for AIM
•
Prepares the company for life on a public market and provides support in appointing team of advisers
•
Co-ordinates the preparation of the admission document which details the company’s investment
proposition
•
Confirms to London Stock Exchange that the company is appropriate for AIM
•
Acts as the primary regulator throughout a company’s time on AIM by ensuring the company continues to
understand its obligations under the AIM Rules
•
Gives corporate finance advice in relation to transactions whilst on AIM
•
Why is the
nomad role
important?
It is important a company choses a nomad firm with relevant sector experience and understands the
business. It is likely that the company will have a long and close relationship with their nomad
•
What does the
nomad do?
•
•
Who are
nomads?
An investment bank, a corporate finance or accountancy firm approved to act in the capacity of a nomad by
London Stock Exchange
To support and guide companies to achieve their growth potential
•
To help companies provide an assessment of their business and prospects for investors
•
A regulatory role to ensure a company meets its on-going obligations
•
To safeguard the integrity of the market. Strict criteria in place for becoming an approved nomad ensures
companies have access to the high-quality advice they deserve
23

24. Indicative AIM IPO transaction timeline
Week
1
2
3
4
5
6
7
8
9
10
11
12
13
14
Test marketing
Negotiation of agreements for the
engagement of Nomad & broker, reporting
accountant and registrars
Review corporate structure with key
advisers
Financial due diligence & reports:
long form report; financial information;
working capital
Drafting of AIM admission document
Senior executive employment
arrangements and terms of appointment of
non-executive directors
Negotiation of placing agreement
Legal due diligence report produced and
verified
Pathfinder completion meeting
Marketing
Placing list finalised
Placing proof prepared & Placing proceeds
received by broker
AIM pre-admission announcement
Completion meeting
Admission to AIM and dealings commence
Proceeds of the placing paid to the
company
24

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