Listing process
Joining the Main Market involves two processes:
- Responsibility for the approval of prospectuses and admission of companies to the Official List lies with the UK Listing Authority (UKLA), a division of the Financial Services Authority (FSA).
- The Exchange is responsible for the admission to trading of companies to the Main Market.
Roles and responsibilities
The UKLA is responsible for drawing up and monitoring the FSA's Listing, Disclosure and Transparency, and Prospectus Rules for Main Market companies.
The Exchange is a recognised investment exchange under UK law and has a duty to ensure that dealings in securities admitted to its markets are conducted in a proper and orderly manner. To ensure this, it requires listed companies to meet the requirements set out in the Admission and Disclosure standards.
Countdown to flotation
The Main Market listing timetable counting down to admission can be broadly divided into two phases − pre-float preparation and the listing process itself.
Pre-float preparation (from 36 months before admission to 24 weeks) |
|
|
36 – 24 months |
Develop a robust business plan and a detailed review of ownership and tax issues, customers/supplier contracts, management information systems and operational and compliance controls. |
|
24-12 months |
The business educates itself on what a Main Market flotation involves, reviews its corporate governance, and completes any strategic initiatives or acquisitions. |
|
12-6 months |
Develop investor relations strategy and ensure the necessary financial statements and non-executive directors are in place. Decide on the method of flotation and interview potential advisers. |
| The listing process (from 24 weeks before admission) | |
|
6-3 months |
Appoint and instruct advisers and agree on the timetable. |
|
12-6 weeks |
Company and its advisers review pricing issues, host analyst presentations and produce drafts of key documents − including the prospectus. |
|
6 weeks - 1 week |
UKLA sees and approves all documents. The company and advisers complete their due diligence, hold PR meetings and analyst road shows. |
| 1 week - admission |
The company makes its formal application for listing and admission. This is granted and trading begins. |
Downloads
Guide to the Main Market (
file pdf - 1 MB)
Admission and Disclosure Standards (file pdf - 1 MB)
Practical Guide to Listing (file pdf - 1 MB)
Practical Guide to Corporate Governance (file pdf - 1 MB)
