Press releases 2008

11 June 2008
15 -08

Record Month On London Stock Exchange's Primary Markets During May
 

Companies raised a record £23.7 billion through new and further issues on the London Stock Exchange’s markets during May, the most money ever raised on the Exchange’s equity markets in a single month. This was nearly three times the £8.6 billion raised during May 2007 and double the £11.2 billion raised during July 2006, the previous record month.

Tracey Pierce, Head of Equity Primary Markets, London Stock Exchange Group, said:

“May was dominated, in terms of money raised, by a handful of major rights issues, but it was also a lively month on the IPO market, with a number of firsts for the Exchange, including our first Mexican issuer, our first Kuwaiti company and our first Specialist Fund Market flotation. These record totals underline the attractiveness of our equity markets compared with other sources of financing, while the sheer diversity of companies that have conducted successful fundraisings in the last month is testament to the choice of markets available on the Exchange to a wide array of global companies with differing needs.”

May’s record fundraising included

• Rights issues from Royal Bank of Scotland, Imperial Tobacco and Groupe Eurotunnel, raising £12.2 billion, £5.0 billion and £415.2 million respectively

• 392 further issues, raising £19.5 billion between them

• 25 new issues raising £4.1 billion between them

• £20.7 billion raised by UK incorporated companies

• £3.0 billion raised by overseas incorporated companies

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For further information please contact:
Catherine Mattison Press Office +44 (0)20 7797 1222
newsroom@londonstockexchange.com

Notes to editors

· About the London Stock Exchange Group:

London Stock Exchange Group is Europe's leading diversified exchange business. It operates Europe's largest and most liquid equity market, holds the number one position in trading ETFs and securitised derivatives, and through its interest in MTS, is the leading platform for the trading of fixed income products.

The London Stock Exchange itself is the world's most international exchange with over 700 overseas companies from over 70 countries on its markets. It has consolidated this position in the last two calendar years, having attracted 202 international companies which raised nearly £30 billion between them. These figures include international companies on AIM, the London Stock Exchange's growth market, which has grown to become the world's most successful market for small and medium sized enterprises with close to 1700 companies at the end of 2007.

Following its merger with Borsa Italiana in 2007, London Stock Exchange Group also now offers post-trade services such as netting, clearing and settlement on an efficient and competitive basis, and a comprehensive range of European bond trading services through MTS.

· About the London Stock Exchange’s 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.

Specialist Fund Market

The Specialist Fund Market is the first public capital market specifically designed to offer access to permanent capital for specialist investment vehicles that wish to target institutional, professional and highly knowledgeable investors. The Specialist Fund Market is an EU Regulated Market, with admission standards that offer sufficient flexibility for single strategy hedge funds, private equity funds and other alternative strategies and structures. Specialist Fund Market issuers are subject to the Prospectus Directive, Transparency Directive, Market Abuse Directive and other EU requirements. The market is open to both UK and international issuers.