Raising Equity Finance
London Stock Exchange Capital Markets
London Stock Exchange is home to about 2,500 companies and offers a choice of four markets: the Main Market, the Professional Securities Market (PSM), the specialist Fund Market and AIM, refelcting our responsiveness to the differing needs of companies from around the world, and across all sectors.
What we do in Primary Markets
The London Stock Exchange’s primary markets put UK and international companies in touch with one of the world's deepest pools of global capital. Our markets are home to thousands of companies from all over the world, ranging from start-ups to some of the world's largest corporations.
Your company's size, objectives and funding needs are all factors that help you to decide which market is right for you.
The Main Market is our flagship market for larger, more established companies, and is home to some of the world's largest and best known companies. Underpinned by London’s balanced and globally-respected standards of regulation and corporate governance, the Main Market represents a badge of quality for every company listed and traded on it and an aspiration for many companies worldwide. There are different routes to market catering for a range of businesses and securities:
- Premium: Corporations inthe Premium segment are constituents of the FCA's Official List and are subject to the highest standards of regulation and governance.
- Standard: Open to shares, depositary receipts and debt securities, the Standard segment is subject to EU minimum standards and is also part of the Official List.
- High Growth Segment: This segment has been specifically designed for equity securities of high growth, revenue generating businesses that are over time seeking to become Premium listed companies.
AIM, our market for smaller, growing companies, is the world's most successful growth market. A wide range of businesses ranging from young, venture capital-backed start-ups to well-established, mature organisations have chosen AIM as the best place to grow their businesses.
The Professional Securities Market is our exchange-regulated market for listed depositary receipts and debt targeted at professional investors. It allows issuers to benefit from a flexible and pragmatic approach to regulatory requirements.
Specialist Fund Market
Our dedicated market for issuers of specialist funds, the Specialist Fund Market offers specialist investment managers a flexible and adaptable route to access permanent capital from a highly sophisticated global investor base. The Specialist Fund Market appeals to variety of different types of investment managers, including those managing large hedge funds, private equity funds, and certain emerging market and specialist property funds.
Benefits for issuers:
- Fundraising opportunities on a wide choice of public markets to suit issuers of different sizes, development status, etc
- Cost-efficient access to a deep liquidity pool featuring the most international and diverse investor base
- Increased visbility and profile alongside an international peer group
- A Pragmatic approach of principle based regulation and the highest standards of corporate governance
- High-quality services by a strong community of experienced and sophisticated financial professionals
London Stock Exchange Group is the leading diversified exchange group in
Europe. Following the merger with Borsa Italiana, the Group is Europe's leading equities business, with around 50 percent of the FTSEurofirst 100 by market capitalization and the most liquid order book by value and volume traded.
The London Stock Exchange is home to about 2,500 companies and offers a choice of four markets: the Main Market, the Professional Securities Market (PSM), the Specialist Fund Market and AIM, reflecting our responsiveness to the differing needs of companies from around the world, and across all sectors. The Main Market is home to larger and more established companies. The PSM is where companies can raise capital through the issue of specialist securities, such as debt, convertibles and depositary receipts, to professional or institutional investors. The Specialist Fund Market is the Exchange’s regulated market for highly specialised investment entities that wish to target institutional, professional and highly knowledgeable investors only. Finally, AIM is the world’s leading market for smaller, growing companies.
One of the London Stock Exchange’s greatest strengths has been its ability to attract investors and companies from high growth markets overseas. There are now close to 600 overseas companies on our markets from over 70 countries, with a combined market capitalisation of over USD3 trillion. In 2013, the Exchange managed to attract 151 new listings (of which 103 were IPOs) raising a total of USD21 billion. Companies across our markets also raised USD26 billion in equity further issues.
As part of our international strategy, the Exchange opened its Asia Pacific headquarter in Hong Kong in October 2004, allowing us to build strong relationships with our customers in the region and building upon London’s expertise in the region. Since establishments of the HK office, more than 140 new Asian companies joined the London Markets, including 20 on the Main Markets and over 120 on AIM. In addition, there are over 500 new listings of corporate debt on the London markets. The Exchange has also opened a representative office in Beijing in January 2008. The establishment of a permanent presence in Beijing underlines the Exchange’s ongoing commitment to China as one of its key overseas markets.