london stock exchange for companies from cheliabinsk region
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London Stock Exchange for companies from Cheliabinsk region. AGENDA. Why London? Reasons for listing Managed assets Main Market or AIM? Main Market International listings comparison Seasonality DR trading on the IOB Top 10 companies traded on the IOB AIM Capital raised - PowerPoint PPT PresentationTRANSCRIPT
London Stock Exchange
for companies from Cheliabinsk region
November 2006 2
AGENDA
• Why London?– Reasons for listing – Managed assets– Main Market or AIM?
• Main Market– International listings comparison– Seasonality– DR trading on the IOB– Top 10 companies traded on the IOB
• AIM– Capital raised– AIM growth – Total AIM IPOs – Access to capital – Cost structure
• How to find us?– Russian website– Contact details
November 2006 3
Main reasons for listing on the LSE
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
CapitalRaising it
efficiently & effectively when
required
ProfileMaximising
marketing/PR opportunities
LiquidityIncreasing and
maintaining liquidity
November 2006 4
Volume of Assets Managedin Financial Centres
Fund management activities in the UK are concentrated in a single location – London.
Source: Big Dough, Hemscott (September 2005)
0
2000
4000
6000
8000
10000
12000
14000
London New York Boston SanFrancisco
LosAngeles
Chicago Paris Frankfurt Munich
Equity ($, billion)
$7
,58
4
$3
,08
1
November 2006 5
Main Market or AIM?
Pre-vetting of Prospectus by the UKLA Compliance required with the rules of the UKLA Normally a three-year trading record required Minimum of 25% of GDRs/shares in public hands Prior shareholders approval for certain transactions Sponsors needed for certain transactions
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 (Nomad) Nomad required at all times
Main Market
November 2006 6
• Why London?– Reasons for listing – Managed assets– Main Market or AIM?
• Main Market– International listings comparison– Seasonality– DR trading on the IOB– Top 10 companies traded on the IOB
• AIM– Capital raised– AIM growth– Total AIM IPOs – Access to capital – Cost structure
• How to find us?– Russian website– Contact details
AGENDA
November 2006 7
International Listings
Source: London Stock Exchange, August 2006
Total New International Issues for Main Market
0
1
2
3
Jan Feb Mar Apr May Jun Jul Aug Sept Oct Nov Dec
Ne
w I
ss
ue
s
2003
2004
2005
2006
The Exchange’s Main Market continues to be an attractive venue for the international listings.
November 2006 8
In 2006, 17 international companies have raised over $16 billion on the Exchange’s Main Market.
International IPOsseasonality
Source: London Stock Exchange, November 2006
Money Raised in International IPOs on Main Market in 2006 YTD ($mn)
1,070
3,010
47498 66 125 244
578
6,794
18 153639 683 972
372 336
1,062
Com
star
Lott
e
Kin
gdom
Hot
els
Rol
ta
Car
ador
Gol
denp
ort
Che
rkiz
ovo
Col
t T
elec
om
Ros
neft
Nap
o
Pha
rmac
eutic
als
A&
D P
harm
a
Aer
Lin
gus
Kaz
mun
aiga
s
TM
K
Sis
tem
a H
als
Che
lyab
insk
Sev
erst
al
Feb-06 Mar-06
Apr-06 May-06
Jul-06 Oct-06 Nov-06
Russian Company
Other International Company
November 2006 9
Source: London Stock Exchange - July 2006
DR trading on IOB
In 2005, IOB total trading turnover was $131bn and in the first 7 months of 2006 that number increased to $172bn.
Trading of DRs on International Order Book (2001 - 7 MNTHS 2006)
-
20
40
60
80
100
120
140
160
180
200
2001 2002 2003 2004 2005 7MNTHS2006
Tra
de v
alu
e $ b
illion
0
100
200
300
400
500
600
Tra
des
'000
Turnover $
Trades
November 2006 10
Top 10 companies traded on IOB
Source: London Stock Exchange trade statistics
CIS IOB trade value reached 73% of all IOB trade this October, a new record high.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
Lukoil Gazprom Orascom Samsung
Rosneft Novatek OTP BANK Lotte Evraz
Magyar
Tra
de
Va
lue
($
mn
)
0
20
40
60
80
100
120
140
160
180
Tra
de
s (th
ou
sa
nd
s)
Total Trade Value
Total Trades
Jan-Oct 2006
November 2006 11
• Why London?– Reasons for listing – Managed assets– Main Market or AIM?
• Main Market– International listings comparison– Seasonality– DR trading on the IOB– Top 10 companies traded on the IOB
• AIM– Capital raised– AIM growth – Total AIM IPOs – Access to capital – Cost structure
• How to find us?– Russian website– Contact details
AGENDA
November 2006 12
2006 – A Record Year for Capital Raised on AIM*
Source: London Stock Exchange, November 2006, *Includes further capital raises
Total Money Raised ($m)
-
5,000.00
10,000.00
15,000.00
20,000.00
25,000.00
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 30-Oct-06
$16,997
$19,406
The success of AIM continues to grow and so does its investor base.
November 2006 13
371
269
519
833 841
162
Max Petroleum Urals Energy Raven Russia
Market Cap at Admission ($,m)
Market Cap Today ($,m)
11 M
onth
s
13 M
onth
s
14 M
onth
s
AIM supports growing companies
AIM growth - 2006
November 2006 14
Source: London Stock Exchange, November 2006
7
22
44
26
31
21
17 19
12
22
$20
$69$73 $73
$43
$62
$33
$44
$76
$24
0
5
10
15
20
25
30
35
40
45
50
Jan-06 Feb-06 Mar-06 Apr-06 May-06 Jun-06 Jul-06 Aug-06 Sep-06 Oct-06
Nu
mb
er
of
Co
mp
an
ies
0
10
20
30
40
50
60
70
80
Av
g R
ais
e (
$m
n)
Number ofCompanies
Avg Raise($m)
2006 has been a successful year for AIM with over $12bn raised at IPO this year alone.
Total AIM IPOs - 2006
November 2006 15
Money Raised on AIM ($,m)*
1,200
2,784
IPO $ Raised Further $ Raised
Source: London Stock Exchange, August 2006
Access to further capital
AIM listing gives companies access to raise further capital after IPO.
November 2006 16
Prospectus Preparation
Underwriting & analytical coverage
Broker
NOMAD
Company
Short -form report
TechnologyExperts
Reporting Accountants
Legal reports and negotiations
Law Firm(NOMAD’s)
Law Firm(Corporate)
Public Relations and Investor Relations
Listing and trading Services
Stock Exchange: AIM
RegistrarPR firms
IndependentResearchersLHC
3 - 5% of the deal, plus1% of the firm
£150K- £300K,Of which NOMAD’sLawyers get 25%- 40%
£100K- £150K
£25K- £50K£10K
£150K- £200K plus1% of the firm
CREST Co
Source: Oxford Said Business School MBA Project, August 2006 as amended by London Stock Exchange
Cost structure for AIM listing
The total cost of raising £50mn ranges between £2.5 - £5mn (5%-10% cost range) excluding value of options.
November 2006 17
• Why London?– Reasons for listing – Managed assets– Main Market or AIM?
• Main Market– International listings comparison– Seasonality– DR trading on the IOB– Top 10 companies traded on the IOB– 30/70 Rule - Rosneft
• AIM– Capital raised– AIM growth – Total AIM IPOs – Access to capital – Cost structure
• How to find us?– Russian website– Contact details
AGENDA
November 2006 18
Russian website
www.londonstockexchange.com/ru
November 2006 19
Jon EdwardsSenior Manager, CIS+44 (0) 20 7797 [email protected]
Zarina KorolovaManager, CIS +44 (0) 20 7797 [email protected]
WWW.LONDONSTOCKEXCHANGE.COM/RU
Contact Details