Preparing for an AIM/OFEX flotation: 5 key points
Securing the platform for future growth
- Be able to document the value of your company, otherwise no one will believe you and you will not get the valuation you want
- Present only verifiable statements of performance, market share and prospects
Coping with a wider shareholder base
- Fiduciary duties: you are a steward for other people's money
- Duties of skill and care: standards are higher in a public environment
Establishing a Corporate Governance Structure
- Separation of powers, establishing committees and appointing non executives are not a legal requirement for AIM or OFEX but may be an investor requirement
- Separating executive powers and establishing committees forces communication (and therefore transparency), prevents one person dominating the corporate agenda and avoids conflicts of interest
- Appointing non-executives prevents a CEO forcing through decisions on grounds of seniority and provides access to a wider pool of talent and experience
Directors' Share Dealings
- "Market abuse" and insider trading
- Prohibition on dealing on the basis of unpublished price sensitive information or in the Close Period
- An important benchmark for a management team's integrity
- Legal requirement to disclose interests in shares
Announcements and Publicity
- The dissemination of accurate information without delay to all shareholders equally is a cornerstone of all public markets
- AIM and OFEX rules require, amongst other things, the announcement of any new developments which are not public knowledge concerning the financial condition or performance of a business which if made public would be likely to lead to a substantial movement in the share price
- Be ready to react to changes in the market/events around you: you will no longer be in control of your company's share price
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