The Equity New-Issuance Process

Course Overview

London's importance as a centre for global equity trading is illustrated by the 418 foreign companies listed on the London Stock Exchange at the end of 2018. The programme delivers practical insight into equity capital markets from multiple participant perspectives: investment banks, institutional investors and corporates.

Programme 1

• Public offering or private placement? What sort of shareholders do you want?
• Pros and cons of going public
• Syndication, underwriting and the Greenshoe option
• Pricing methodology — bookbuilding or tender; "money left on the table"
• Role of the Lead Manager and Bookrunner
• What does it cost? What attracts investors? Cornerstone investors
• Case study — a walk through a new issue in practice

Programme 2

• Considering the case for cross-border listings
• Catalysts — valuation, liquidity, cost, corporate reputation; which exchanges dominate the IPO statistics?
• Depositary receipts for emerging market corporates — sponsored vs unsponsored
• A look at London's International Order Book
• The Shanghai–London Stock Connect — a number of "firsts"

Learning Outcomes

• What drives a corporate's decision on where to list?
• What does it cost to list on exchange, and how is this broken down?
• Why would a corporate use depositary receipts, and how do they work?