Advisers
Led and coordinated by the sponsor, the team of advisers plays a central role in the company’s flotation on the Main Market. London Stock Exchange works with advisers to make the process as smooth as possible.
Regulatory issues
One of the advisers’ main functions is to interact with the UK Listing Authority (UKLA) which monitors the listing process and compliance with their Listing Rules in order to safeguard investors’ interests.
The UKLA, which is part of the Financial Conduct Authority (FCA), is the competent authority for listing in the UK and the regulatory body for UK listed companies. It is responsible for drawing up and monitoring the FCA Listing, Disclosure and Transparency and Prospectus Rules that companies must meet. London Stock Exchange’s Admission and Disclosure Standards set out the admission requirements and continuing obligations for Main Market companies.
Interfacing with the market
To make a success of its flotation, the company also needs to persuade the investment community that its business is soundly managed in line with a robust business strategy and that the management has the necessary skills and commitment to execute it. The advisers − especially the sponsor, broker and PR/IR company − play a key role in getting these messages across to the investment community
The Main Market listing timetable prior to admission can be broadly divided into two phases − pre-float preparation and the listing process itself.
Pre-float preparation (from 36 months before admission to 24 weeks) |
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36 – 24 months |
Develop a robust business plan and a detailed review of ownership and tax issues, customers/supplier contracts, management information system and operational and compliance controls. |
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24-12 months |
The business educates itself on what a Main Market flotation involves, reviews its corporate governance, and completes any strategic initiatives or acquisitions. |
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12-6 months |
Develop investor relations strategy and ensure the necessary financial statements and non-executive directors are in place. Decide on the method of flotation and interview potential advisers. |
The listing process (from 24 weeks before admission) |
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6-3 months |
Appoint and instruct advisers and agree on the timetable. |
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12-6 weeks |
Company and its advisers review pricing issues, host analyst presentations and produce drafts of key documents − including the prospectus. |
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8 weeks |
UKLA sees and approves all documents. The company and advisers complete their due diligence, hold PR meetings and analyst road shows. |
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2 weeks - admission |
The company makes its formal application for listing and admission. This is granted and trading begins. |
The table above is indicative only and timing may differ from company to company. Some processes run concurrently, for further information please contact the primary markets team.
Becoming an Adviser
Sponsors are advisers who must be approved by the UKLA to provide certain services to issuers. For details on how to become an sponsor please visit the UKLA website.
Contact us
For advice, guidance or information on the role and responsibilities of advisers in a Main Market listing, or to ask specific questions in confidence about a issues affecting a company you are bringing to market, please contact the London Stock Exchange’s adviser team on +44 (0)20 7797 3403.