The course covers all the important preparatory, marketing, regulatory, legal and taxation requirements for arranging and implementing a company’s flotation on the Alternative Investment Market (“AIM”).
Participants will receive practical and detailed guidance on all stages of the process from the initial review of a company’s eligibility and suitability for flotation through to its quotation on the London Stock Exchange.
The role and responsibility of each of the professional advisers will be described and, in view of the onerous responsibilities of the directors of a public company, the advantages and disadvantages of a quotation will be fully evaluated.
Participants will receive a booklet containing copies of 17 slides and 55 pages of very comprehensive notes. Each slide will cover a number of related topics and the accompanying notes will support the content of the course to be delivered by the trainer.
During the course of the day, participants will undertake one or two exercises (problems) in groups of two or three (depending on the size of the class) which will involve considering what advice should be given to a client in particular circumstances. Participants will discuss the exercise with each other and then with the trainer and will receive a written answer to the problem.
Your client has decided to float his company on AIM. It has been agreed that the directors may sell 10 per cent. of their holding as part of the flotation. You advise on how many new shares need to be issued to raise the cash required to fulfil the company’s development plan. You then calculate the enlarged share capital, the projected market capitalisation and a pro forma PER assuming repayment of debt.
Your client’s stockbrokers have agreed to underwrite a rights issue at a 20 per cent. discount. You calculate how many shares will need to be issued to raise the required funds, compute the theoretical ex-rights price and comment on how shareholders can deal with their rights.