WHAT AIM HAS TO OFFER GERMAN COMPANIES

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WHAT AIM HAS TO OFFER GERMAN COMPANIES The most
successful growth market in the world. By
Jeff Keating Teather Greenwood
Jeff Keating 28 April 2005
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AGENDA

• Introduction to AIM
• Access to Capital
• Liquidity
• Process overview

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INTRODUCTION TO AIM

• 10 years old
• Small cap, growth companies
• Lighter regulatory touch
• Simple, clear rules and obligations

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DISTRIBUTION OF AIM COMPANIES BY MARKET
CAPITALISATION
Total number of companies on AIM 1,098
March 2005
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DISTRIBUTION OF AIM COMIPANIES BY MARKET
CAPITALISATION
March 2005
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AIM COMPANIES BY SECTOR (by number)
March 2005
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AIM COMPANIES BY SECTOR (by market
capitalisation)
March 2005
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NUMBER OF FOREIGN COMPANIES ON AIM SINCE INCEPTION
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FOREIGN AIM COMPANIES BY COUNRTY OF INCORPORATION
Total Foreign Companies 134
March 2005
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FOREIGN AIM COMPANIES BY SECTOR (by number)
March 2005
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FOREIGN AIM COMPANIES BY SECTOR (by market
capitalisation)
March 2005
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LONDON CONTINUES TO ATTRACT COMPANIES SEEKING TO
RAISE CAPITAL
London dominated the European IPO market over the
financial year 2004 having 79 of all IPOs
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ACCESS TO CAPITAL
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FUNDS RAISED ON AIM SINCE INCEPTION
Total Raised on AIM 15.9bn
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FUNDS RAISED ON AIM FOR FOREIGN COMPANIES SINCE
INCEPTION (Primary issues)
Total raised in primary market for foreign
companies 1.03bn
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FUNDS RAISED ON AIM FOR FOREIGN COMPANIES
SINCE INCEPTION BY SECTOR (Primary Issues)
Total raised in primary market for foreign
companies 1.03bn
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FUNDS RAISED ON AIM FOR FOREIGN COMPANIES IN
2004 BY SECTOR (Primary Market)
Total raised in primary market for foreign
companies in 2004 566m
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LIQUIDITY
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AIM TURNOVER BY SECTOR (by value)
Total AIM Turnover 2004 18.1bn
January - December 2004
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TURNOVER ON AIM SINCE INCEPTION
- Turnover value m - Shares traded (m)
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INVESTMENT IN AIM

• All but one of the main UK institutions invests
  in AIM
• Value of Institutional holdings 10 billion
• Top 5 by value CDS Co, Fidelity, Artemis,
  Chase, Foreign Colonial
• Top 5 by number of investments Foreign
  Colonial, Artemis, Fidelity, Framlington,
  Gartmore
• 80 of secondary market bargains are retail

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MOST ACTIVE INSTITUTIONS ON AIM BY VALUE OF
INVESTMENTS
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MOST ACTIVE INSTITUTIONS ON AIM BY NUMBER OF
INVESTMENTS
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PROCESS OVERVIEW
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HOW WE APPROACH AN IPO
TG New Business Committee

• Initial due diligence
• Desktop
• Analyst visit to co.
• Test IPO-ability

• TG formal pitch to board
• Agree valuation
• Agree timetable

Meet Company

• Financial due diligence
• Legal due diligence
• Prospectus

Analyst produces pre-IPO research (with
forecasts)
As appropriate Pitch suggested structure,
timetable and valuation range to major external
shareholder
Tax clearances if appropriate
Pathfinder issued Roadshow commences PR
Shares admitted to the market Monies paid to
Company
Monies paid to vendor shareholders
PR/press coverage Placing commitments
received Confirmed live deal
IPO
Roadshow completes Bookbuild Pricing confirmed
Board meeting to approve terms of IPO File
prospectus