Press releases 2005

20 December 2005

RECORD YEAR FOR INTERNATIONAL LISTINGS

In 2005 the London Stock Exchange attracted a record 129 international companies, from 29 countries, to its Main Market and AIM – an increase of 82 per cent on 2004.  International companies raised a total of £5.9 billion in new issues on the Exchange’s markets, the highest value since 2000.

An Exchange survey of the 80 international companies that conducted an IPO on its markets has revealed that, for more than three quarters of respondents (77 per cent), access to capital was the principal reason for their decision to go public.  89 per cent of the companies surveyed said they were satisfied with the price they achieved on flotation.

According to the survey, 27 per cent of respondents identified London’s liquid international trading market as the most important factor in their company’s decision to float on the Exchange’s markets.  This was closely followed by the UK’s standards of regulation and corporate governance (25 per cent), analyst coverage (25 per cent) and access to emerging market institutional investors (23 per cent).  

Of those companies that considered listing on an US exchange, 90 per cent felt that the demands of Sarbanes Oxley made listing in London more attractive.  More than half of the international companies appointed a UK based non-executive director in preparation for their London listing.

Martin Graham, the Exchange’s Director of Market Services and Head of AIM, said:

“The results of the survey demonstrate that world-class international companies select a London listing to access our deep pool of international capital and to be part of one of the world’s most liquid international trading markets.”

He added:

“This has been a record year for international new issues on AIM and the Main Market. As the world’s capital market, we look forward to welcoming many more international companies to our markets in 2006.”

2005 Primary Market Highlights

Main Market

• A total of 98 companies joined the Main Market in 2005, of which 77 were IPOs, raising a total of £9.8 billion in new issues.
• The Main Market enjoyed the highest number of IPOs since 2000.

AIM

• AIM, for the second year in succession, had its most successful year since its launch in 1995, both in terms of total money raised and number of new issues.
• 494 companies joined AIM in 2005, 318 of which were IPOs, raising a total of £5.98 billion in new issues.

There were 2,214 further issues on the Exchange’s markets in 2005, raising a combined total of £10.4 billion.

For a copy of the 2005 International IPO Survey and further information, please contact:

Anya Velzeboer Press Office  +44 (0)20 7797 1222    
Simon Wheeler newsroom@londonstockexchange.com

Notes to editors:

About the London Stock Exchange
 
The London Stock Exchange is the world’s premier international equity exchange and a leading provider of services that facilitate the raising of capital and the trading of shares.

The London Stock Exchange is the most international equities exchange by trading in the world and Europe's largest pool of liquidity.  In 2004, 80% of all Western European IPOs floated in London. By the end of 2004, the market capitalisation of UK and international companies on the London Stock Exchange’s markets amounted to £3.5 trillion, with £4.7 trillion of equity business transacted over the year.

The London Stock Exchange is a Recognised Investment Exchange (RIE) under the Financial Services and Markets Act 2000 and is supervised by the Financial Services Authority.

Companies considering flotation have a choice of markets:

AIM
AIM is the London Stock Exchange’s international market specifically designed for smaller, growing companies, combining the benefits of a public flotation with appropriate levels of regulation.

Main Market
The London Stock Exchange’s Main Market for established companies seeking international recognition is one of the world’s best known, longest-established and most liquid markets.  It is home to some of the world’s largest and most successful companies, giving them access to one of the deepest pools of capital in the world.

Professional Securities Market
The Professional Securities Market was established in July 2005, to coincide with the introduction of the FSA's new Listing Rules.  PSM provides a solution for those issuers seeking to list securities in London without having to re-state their financial information to IFRS or follow the additional requirements of an offering to retail investors.  Debt securities or depository receipts of any denomination may be listed on PSM on production of a prospectus aimed at a wholesale or professional audience.

IPO

An IPO or Initial Public Offering is when a new company joins one of our markets and raises capital by issuing shares.  This excludes transfers and introductions (when companies join the market without raising money).

Primary Market Statistics

These are provisional year end statistics up to December 16th, 2005. Full year-end statistics will be available with the publication of the January Monthly Market Report in the second week of January 2005.

For further statistical  information click here ">Primary Market statistics (MS Word 112Kb)