Floating Your Company

7. The Process

7.1 Start by choosing your advisers (see 4) and getting the basics right (see 5).

7.2 Nominate one individual responsible for the flotation (usually the finance director).

• It is useful if that individual has previous experience of a flotation.

7.3 Decide what type of flotation you want.

• Choose an introduction if you are not looking to raise capital. It is the cheapest and simplest way to float. An introduction is often used to move from, say, AIM to the Main Market.
• In a private placement, shares are offered to selected investors.
• In an offer for sale, shares are offered to the public and investing institutions. An offer for sale is more expensive than a private placement.

7.4 If you are raising money from new investors, you will need a prospectus.

This should set out all the key information about the company and the share offering.

• You are legally responsible for the accuracy of information in your prospectus. Be sure to check it carefully.

7.5 The typical timescale from start to successful flotation is at least three months.

But it is not unknown for the process to take 12 months.