Public offer
In a public offer, the company’s financial adviser offers the company’s shares to private and institutional investors, and usually arranges for the offer to be underwritten. A public offer attracts private investors, who play an important role in increasing the liquidity of the company’s shares.
Placing
A placing usually involves offering the company’s shares to a selected base of institutional investors. This allows the company to choose its investors and to raise capital with lower costs and greater flexibility. However, the narrower shareholder base resulting from a placing may restrict liquidity after trading begins.
Introduction
In an introduction, the company joins the Main Market without raising any capital. Whilst an introduction involves no underwriting fees and little requirement for advertising, it also limits the initial opportunities for boosting the company’s profile and visibility. The introduction route is sometimes used as a platform for a future capital-raising.