Raising Equity in Public Markets
Cost for BPP PD Members: £490.00 VAT + 6 CPD Hours
(£615.00 VAT for non BPP PD Members) Click Here for details of our membership scheme.)
This course is intended for those with some knowledge of financial markets that are connected in any way with Initial Public Offerings (IPOs) and Secondary Equity Raisings in UK equity markets. This would include investment bankers, corporate brokers, lawyers, accountants PR advisers and staff in companies that are contemplating an IPO.
The Credit Crunch has left companies with indebted balance sheets and a need to raise additional equity capital. The more recent recovery of equity markets has created new opportunities for private companies to list on the London Stock Exchange via Initial Public Offerings (IPOs). In addition, many listed companies are seeking to raise new capital from investors via secondary equity offerings such as rights issues, placings and open offers.
Market conditions have also meant that the structures for these offerings have evolved, with increased use of deep discount rights issues and cash box placings as well as the emergence of compensatory open offers, cornerstone investors and new underwriting procedures.
This course takes a UK market perspective and introduces the IPO process and looks at the ways secondary offerings are being executed. It is intended to give an overview of the process for those who will be involved in equity fund raisings.
This course is intended to complement specialized courses like The Listing Rules and AIM Rules.
Learning outcomes include obtaining a greater understanding of:
- Process for a new listing
- Role of the investment bank sponsor
- Role of other parties
- Listing Rules and Admission to Listing
- The EU Prospectus Directive, Market Abuse Directive and Transparency Directive
- Standard and premium listings
- Prospectus Rules
- Requirement to produce a prospectus
- Drawing up a prospectus
- Approval and publication of a prospectus
- Other issues
- UK regulation for UK secondary equity issues (overview)
- Companies Acts and FSMA
- Prospectus, Listing and Disclosure and Transparency Rules
- The Class Tests
- UK pre-emption requirements
- Structures for UK equity offerings
- Rights issues, traditional and deep discount
- Open offers/ placings with clawback and other placings
- New structure e.g. compensatory open offers, cash box placings
- Means of marketing shares
- Marketing of shares to different types of investors
- Price setting mechanisms
- The process
- Accelerated bookbuilding
- “Red herring” prospectus
- Allocation, “Greenshoe” and stabilisation
- Possible developments
- Rights Issue Reform Group proposals
- Alternative models of equity raising
- Which structure to use
- Rights vs. open offer vs. placing
- Fixed price vs. bookbuilding
- Key differences of AIM listings
"A CPD certificate of completion will be provided by BPP Professional Education Limited upon request, following attendance."