The admission process to the Main Market varies according to the type of listing and securities to be traded. In general however, the key steps to admission are:
- Appoint a sponsor. If listing DRs or specialist securities, an agent will be required in place of a sponsor
- Produce financial statements according to UK GAAP, US GAAP or IAS for an equity listing. For DRs and specialist securities, local GAAP may be sufficient
- Your sponsor (or listing agent) will then need to apply, on the company's behalf to:
- The London Stock Exchange - for its securities to be traded on the Exchange
Once both processes are complete, the securities are officially listed on the Exchange.
There are three principle ways in which to raise capital on the Main Market – equity, depositary receipts and debt.
Equity
Internationally-based companies can apply for a primary listing of their equity (also known as shares) in London; or if already listed on their domestic market, can apply for a dual primary or secondary listing. Shares can be traded in over 20 global currencies.
Depositary Receipts
Depositary Receipts (DRs) are negotiable certificates which represent ownership of a given number of a company’s shares which can be listed and traded independently from the underlying shares. There are a number of forms of DRs including American Depositary Receipts (ADRs), Global Depositary Receipts (GDRs), Euro Depositary Receipts (EDRs) and Retail Depositary Receipts (RDRs) – all of which can be listed in London.
Specialist securities
As well as shares and DRs, companies can list debt instruments on the Main Market. These range from simple Eurobonds and credit-linked notes to complex asset-backed issues, high yield bonds and convertible /exchangeable bonds.