LIstIng In London

the routes to mcrket

Tel AvIv, November 2006
2
Agenda
- London the InternatIonal market of choIce
- Foutes to a London lIstIng
- A|
- C0Fs on the |aIn |arket
- PrImary lIstIng on the |aIn |arket
- Examples

London Stock Exchange key statIstIcs

TotaI companIes
0omestIc: 2,589
nternatIonal: 599
harket capItaIIsatIon
UK lIsted: USS,454bn
nternatIonal lIsted: USS4,044bn
A|: USS140bn
EquIty turnover (Jan-0ec 2005)
|aIn |arket:
0omestIc: USS4,61bn
nternatIonal: USS4,770bn
C0Fs: USS11bn
A|: USS75bn
Source: London Stock Exchange statIstIcs - JuIy 2006
4
Source: London Stock Exchange and
individuaI exchange websites - JuIy 2006
The Exchange of choIce for InternatIonal
companIes
n 2005:
- London Stock Exchange 43 new companIes joIned In 2005, 41 were !S, 3 of whIch were InternatIonaI
- NYSE - 122 PDs In 2005, 12 companIes of whIch were InternatIonal
- Nasdaq - 18 PDs In 2005, 21 companIes of whIch were InternatIonal
%otaI number of IPOs on the LSE, Nasdaq and NYSE
2002 to Y% 2006
0
50
100
150
200
250
300
350
400
450
2000 2001 2002 2003 2004 2005 YTD 2006
%
o
t
a
I

N
o

o
f

I
P
O
s
London Stock Exchange
Nasdaq
NYSE
5
The London Stock Exchange offers InternatIonal companIes a
number of routes to market
1. A|
- The world's most successful growth market.
2. |aIn |arket
- Clobal 0eposItory FeceIpts (C0Fs) SpecIalIst securItIes
targetIng professIonal Investors focused on emergIng
markets. C0Fs are traded on the nternatIonal Drder 8ook
(D8).
- !rmcry Lstny on the Mcn Mcrket
Foutes to the London market
6
A choIce of proven, global markets
A choIce of globally respected markets supported by
a wIde range of InstItutIonal E retaIl Investors
Supports more establIshed
companIes seekIng further growth.
1,628 Issuers Supports earlIer stage companIes In
theIr InItIal growth perIod.
1,560 Issuers
|aIn |arket
Sponsor
UK LIstIng AuthorIty
NomInated AdvIser (Nomad)
7
Agenda
- London the InternatIonal market of choIce
- #outes to a London IIstIng
- Ah
- C0Fs on the |aIn |arket
- PrImary lIstIng on the |aIn |arket
- Examples
8
A market for growIng companIes
istribution of AIM companies by market vaIue
JuIy 2005 vs JuIy 2006
0
50
100
150
200
250
300
350
400
less than
$3.8m
$3.8m to
$9.5m
$9.5m to
$19m
$19m to
$47m
$47m to
$95m
$95m to
$189m
$189m to
$473
more than
$473m
Market VaIue ($)
N
o

o
f

c
o
m
p
a
n
i
e
s
No of companies Jul-06
No of companies Jul-05
Source: London Stock Exchange trade statIstIcs - JuIy 2006
9
A| companIes: 1,560
Dverseas A| companIes: 277
PDs on A| In 2005: 335
259 UK
76 overseas
CapItal raIsed (new E further) sInce 1995: US$63bn
CapItal raIsed (new E further) In 2005: US$16bn
USS 12bn UK companIes
USS 4bn overseas companIes
A|
Key statIstIcs
Source: London Stock Exchange trade statIstIcs - JuIy 2006
A| - key statIstIcs
10
FlexIble regulatIon
No mInImum market cap
No fInancIaI hIstory requIred
No mInImum amount of shares to be In pubIIc hands
n most cases, no prIor sharehoIder approvaI requIred for
transactIons
AdmIssIon documents not pre-vetted by Exchange or UKLA but by
nomInated advIser
NomInated advIser (Nomad) requIred at aII tImes
AdmIssIon Fules
11
ContInuIng oblIgatIons
A| companIes are subject to the A| Fules whIch outlIne the contInuIng oblIgatIons of beIng on
a publIc market. Some of the key contInuIng oblIgatIons are:
A| companIes must have a Nomad at all tImes, otherwIse they wIll be suspended
from the market
A| companIes must dIsclose all prIce sensItIve InformatIon In a tImely manner
IncludIng substantIal transactIons, related party transactIon, reverse takeovers and
other mIscellaneous transactIons
All dIrectors accept full responsIbIlIty, collectIvely and IndIvIdually for the A| Fules
Half yearly and annual report and accounts requIred In adherence wIth deadlInes
FestrIctIons on deals for dIrectors and applIcable employees on A| securItIes durIng
close perIods
UK Corporate Covernance standards
12
Money raised on AIM since Iaunch
0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
18,000
20,000
1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
to
July
Year
U
S

m
i
I
I
i
o
n
s
Secondary issues
New issues
Source: London Stock Exchange
EffIcIent capItal raIsIng
1
nstItutIonal Investors understand
#ank host actIve nstItutIons by vaIue of
Investment
No of nvestments VaIue of nvestments (fm)
1 FIdelIty 11 692.81
2 ArtemIs 94 451.
Schroder nvestment mgt 45 40.44
4 ForeIgn E ColonIal 112 00.0
5 |errIll Lynch 46 244.49
6 U8S 8 226.29
7 FramlIngton 56 222.08
8 nvesco 51 221.47
9 Coldman Sachs 46 208.7
10 FA8 CapItal 58 205.02
11 Cartmore 65 196.04
12 TIger Fesource FInance 187.61
1 upIter Asset |anagement 44 180.58
14 Lansdowne 20 167.5
15 AvIva 9 162.26
hajor InstItutIons Invest In Ah.
Source: London Stock Exchange trade statIstIcs - 0ecember 2005
nstItutIonal nvestors
14
Agenda
- London the InternatIonal market of choIce
- #outes to a London IIstIng
- A|
- C0#s on the haIn harket
- PrImary lIstIng on the |aIn |arket
- Examples
15
Key features of |aIn |arket
PrevettIng of admIssIon documents by the UKLA
ComplIance requIred wIth the rules of the UKLA
Normally three years of fInancIals requIred
|InImum of 25 shares In publIc hands
PrIor shareholders approval for certaIn
transactIons
Sponsors needed for certaIn transactIons
No equIvaIent to Sarbanes-xIey sectIon 404
An InteIIIgent approach to reguIatIon
|aIn |arket
16
C0Fs on the London Stock Exchange
DptImal poInt of access to the worldwIde InstItutIonal Investor base
|ajor hub for InternatIonal fund managers
Access to all InstItutIons worldwIde
HIghest profIle of any InternatIonal market
WIden shareholder base
nternatIonal profIle and publIcIty
ncreased brand value
A global peer group
World's only dedIcated, lIquId market for 0eposItary FeceIpts
Transparent electronIc platform for 0eposItary FeceIpts tradIng
London Is the focaI poInt of access to gIobaI Investors
17
Source: London Stock Exchange - AprIl 2006
Case Study: London - a leader In
InternatIonal tradIng
n 2005, turnover was $131 bIIIIon. Jan - JuIy 2006 over $160 bIIIIon.
TradIng of 0Fs on nternatIonal Drder 8ook
(2001 7 |NTHS 2006)
-
20
40
60
80
100
120
140
160
180
200
2001 2002 200 2004 2005 7
|NTHS
2006
T
r
a
d
e

v
a
I
u
e

$

b
I
I
I
I
o
n
0
100
200
300
400
500
600
%
r
a
d
e
s

'
0
0
0
Turnover S
Trades
T
r
a
d
e

v
a
I
u
e

$
b
n
T
r
a
d
e
s

'
0
0
0
18
|aIn |arket UK LIstIng AuthorIty
LIstIng #uIes
Fules In relatIon to Issuers who are lIsted on or are seekIng admIssIon to the DffIcIal LIst
0IscIosure #uIes
Fules In relatIon to:
Issuers who have fInancIal Instruments admItted to tradIng on a regulated market; and
persons dIschargIng managerIal responsIbIlItIes' and theIr 'connected persons'
!rospectus #uIes
Fules In relatIon to those who are:
seekIng admIssIon of securItIes to tradIng on a regulated market; or
offerIng securItIes to the publIc.
AdmIssIon Fules _ UKLA LIstIng rules, Chapter 18
http:llwww.fsa.gov.uklpagesldoInglukIal
19
|ost advanced regulatIon and governance
Source: Covernance |etrIcs nternatIonal, |arch 2005
Corporate governance: overaII ratIng by country
3.4
4.05
4.05
5.06
5.08
5.23
5.53
7.03
7.3
0 1 2 3 4 5 6 7 8
apan
France
Hong Kong
SIngapore
taly
Cermany
SwItzerland
USA
UK
!rIncIpIes-based reguIatIon: hIgh standard, pragmatIc appIIcatIon
No equIvaIent to Sarbanes-xIey sectIon 404
An InteIIIgent approach.
20
TASE
London haIn
harket
!rImary
London haIn
harket
C0#
Ah
Frutarom
Frst lsted on
TASE
Tescom
Frst lsted on
TASE
888.com
Sole rmary
lstny n
London
XTL
IopharmaceutIcaI
Frst lsted on
London
ateman
EngIneerIng
Sole lstny on
AlM
PermutatIons of cross lIstIng
ChoIce, fIexIbIIIty, recognItIon
21
Contact
Craham 0aIIas
Head of usIness 0eveIopment - EhEA AmerIcas
gdaIIas@Iondonstockexchange.com
+44 (0) 20 777 4055
WebsIte: www.Iondonstockexchange.com