London Stock Exchange website:

 

http://www.londonstockexchange.com/

 

London: The top choice for foreign companies to list

 

    As the world's most international financial center, London is not only a global leader in European bond and foreign exchange trading, but also handles more than two-thirds of international equity underwriting. London's size and location mean it provides an ideal gateway to Europe for companies and investors from all over the world.

 

    The LSE operates the world's most international stock market, with more foreign stocks traded than any other stock exchange.

 

The London Stock Exchange plays a central role in maintaining London's lead. The LSE operates the world's strongest international stock market, with more foreign stocks traded than any other stock exchange.

 

    About 500 foreign companies from 63 countries are listed and traded in London. In 2000, foreign securities transactions in London totaled about $500 million. No other exchange in the world can match these numbers - or have such a long history of serving international issuers.

 

    With over 550 foreign banks and 170 global securities firms without offices in London, offering their expertise to issuers from around the world is another advantage London can offer foreign companies.

 

These advantages also include:

 

·All-round, transparent and liquid market

 

·Strict and flexible regulatory system that is respected globally

 

·The gateway to the global rich capital market

 

· Reliable and technologically advanced trading system

 

· In-depth knowledge and understanding of foreign companies and markets

 

· Central location between US and Asian time zones

 

· Strong reputation and experience accumulated over the centuries

 

World-class international companies deserve to be listed on world-class markets. London is such a market.

 

London - the meeting point for international companies and global capital

 

    London is the first choice for foreign companies interested in investing from around the world. To date, more foreign companies have chosen to list on the LSE than any other stock exchange in the world. Hundreds of listed companies from around the world are being listed on the London Stock Exchange - with more issuers joining them each year.

 

    Companies listed on the London Stock Exchange benefit from the Exchange's advanced trading and information systems for international equities. These systems enable investors from all over the world to easily access the LSE market and trade through a computerized automatic matching system. The advantages the LSE offers to foreign countries is also reflected in the Exchange's expanding range of international markets and products, each tailored to the needs of a different group of companies and investors, including the techMARKTM High-Tech Main Board Market - London The stock exchange is a market for high-tech innovative companies, and the AIMTM second board market - a market for small, high-growth companies.

 

 

 

capital

 

When a foreign company is listed in London, it means to the world that its business is truly international.

 

Listing in London can introduce your company to the international investment community for the first time, or strengthen your existing connections. In any case, a listing in London will increase investor interest in your business and increase their confidence in the future of your business. Such interest and confidence in turn will help facilitate the trading of your company's shares or depository certificates, which will bring further financing opportunities for your company.

 

London's clear leadership in international listings is reflected in the full range of advantages it offers.

 

    As the world's largest equity fund management centre, London is excellent at introducing international issuers to many large institutional investors. Institutional investors have an absolute advantage in stock investment and trading in various markets of the London Stock Exchange, with a trading share of more than 80%. Institutional investors are a very valuable source of capital, especially as they can take a longer-term view and thus play a greater stabilizing role, especially in volatile market conditions.

 

    Today, the total value of the holdings of European investment institutions amounts to about US$5.5 trillion – more than one-third of the total global institutional holdings. Within Europe, London is far ahead, managing almost half of European institutional holdings. British fund managers also manage more than $700 billion in assets for investment funds in other countries. About half of this capital comes from North America. This makes London the premier gateway to global capital.

 

fluidity

 

    Foreign stocks trade in London consistently higher than other markets. This underscores the centrality of foreign companies to the LSE's business - which is unique in that foreign shares trade on the LSE far outnumber those in the UK. In London, the average daily volume of foreign stocks traded at $19.5 billion, far higher than any other major stock exchange.

 

 

 

Reputation

 

    Foreign stocks trade in London consistently higher than other markets. This underscores the centrality of foreign companies to the LSE's business - which is unique in that foreign shares trade on the LSE far outnumber those in the UK. In London, the average daily volume of foreign stocks traded at $19.5 billion, far higher than any other major stock exchange. The size, prestige and global reach of the London market means that foreign companies listed and traded here enjoy global visibility and coverage.

 

    The trading and information systems of the London Stock Exchange for foreign stocks include the international stock automatic matching order trading system and the EAQ international stock automatic quotation system. The LSE's international stock auto-matching system is a fully automated, order-driven trading facility. It helps raise the profile of the most-traded foreign companies on the LSE and facilitates the trading of their shares with its speed, transparency and efficiency.

 

    The SEAQ International Stock Automatic Quote System is a quote-driven screen-based trading and information system that has become an excellent communication channel between London-listed foreign companies and their investors, and has become a benchmark in the field. The SEAQ international stock automatic quotation system plays a key role in enhancing the liquidity of listed companies' stocks in their home market, the London market and other financial centers around the world.

 

    More than 100,000 international investors around the world have access to the LSE's trading and information systems, which bring first-class visibility to foreign companies listed in London.

 

 

 

International Outlook

 

Overall, the European investment community is quite welcoming to foreign companies - with London being the most welcoming.

 

European institutions invest twice as much in foreign stocks compared to their North American counterparts. Financial institutions resident in the UK are the most active group of international investors. An average of 37% of their portfolios are in overseas securities—a much higher percentage than investment institutions in other countries.

 

 

 

Deep understanding and know-how

 

    As the world's leading international investors, our institutions also have the deepest knowledge and know-how of foreign companies.

 

    This knowledge and understanding has been accumulated over the years. London-based investors have extensive experience in researching foreign companies and their business environment. These investors also have a knack for doing business and have a broad interest in foreign companies trading in London, spanning more than one industrial sector.

 

    British foreign companies listed in London come from many major industries, from telecommunications, high-tech, aerospace, to utilities, consumer goods, retail, banking, manufacturing, and resource development. Many of these listed companies are state-owned enterprises and privately owned companies around the world. result of .

 

    The London market's in-depth knowledge of foreign companies also contributes to greater stability for foreign companies. In times of international economic turmoil, seasoned London investors can take a medium to long-term perspective. Relatively speaking, they will not sell their holdings in panic.

 

After being accepted for listing in London

 

    Once approved for listing on the LSE market, your company's relationship with the LSE enters a new phase. The London Stock Exchange provides a range of services to all its foreign listed companies, including enabling listed companies to submit company announcements to the RNS Information Disclosure System via the Internet, providing exclusive market and stock performance data for each listed company through the company reporting service, and supporting your company's The Investor Relations programme provides assistance and support, and you can also create a link between your company's website and the LSE's website.

 

    Trading in London also means your company is entering an exciting new relationship with the London investment community. London is at the forefront of the global investor relations industry, with a team of high-spirited and experienced investor relations professionals dedicated to getting public company news to key investors. Investor relations programs play an important role in enhancing the market image of foreign companies and promoting the liquidity of their stocks. It is worth noting that more and more foreign companies are choosing to establish their European and even global IR operations headquarters in London.

 

Listing route

 

 

 

There are three ways to list in London - shares, depositary certificates, bonds. Each route to access the London market has different disclosure requirements and listing procedures.

 

stock

 

Foreign companies can list directly on the main market of the London Stock Exchange (either as a primary or secondary listing).

 

If the company's shares are not yet listed on its home market, the company can apply for a primary listing in London. On the other hand, if the company is already listed on its home market, the company can apply for a secondary listing in London, where the company's shares are listed on the London and home market together.

 

This means that foreign companies can apply for a listing in London regardless of whether they are already listed on their home exchange. In both cases, foreign companies can fully benefit from a London listing.

 

Listing requirements

 

Regardless of which type of listing a company applies for, the UK Listing Authority (UKLA) - the UK Financial Services Authority's division for listings in London - has a set of basic requirements that must be met before a listing can be approved and shares can be traded on the LSE.

 

Requirements for companies wishing to list shares in London include:

 

Sponsor

 

Every company applying to go public must be represented by a sponsor, usually an investment bank, stockbroker, law firm or accounting firm. Sponsors must meet certain eligibility requirements and their functions include being responsible for liaison between the company and UKLA and providing guidance to the company throughout the listing process.

 

business records

 

Companies applying for listing in London are usually required to have a business record of at least three years. However, UKLA's rules also allow certain types of companies - such as research-based companies and high-tech innovations - to list if they have a track record of less than three years but meet certain additional requirements.

 

stock held by the public

 

The company should have a market value of at least £700,000 (about $100), and usually at least 25% of its shares are held by people not connected to the business.

 

controlling shareholder

 

UKLA must also be satisfied that the company can operate as a separate entity, especially where there is a controlling shareholder, which may create a conflict of interest.

 

prospectus

 

Companies and their advisers must prepare a prospectus in accordance with the requirements of the UKLA Listing Rules. The information provided in the prospectus must be sufficient to allow potential investors to make informed decisions about the public company and its shares. The information that a prospectus must provide includes: independently audited financial data, director salaries and contract details, and information about major shareholders.

 

continuing obligations

 

A company must fulfill a series of obligations on an ongoing basis after and after its shares are listed and traded. These obligations include providing half-yearly financial statements and independently audited full-year financial statements within specified deadlines and disclosing any price-sensitive information to the market in a timely manner.

 

certificate of deposit

 

Deposit certificates - commonly known as DRs - are tradable securities listed and traded in London that represent ownership of the issuer's underlying shares. Several types of depositary certificates are listed and traded in London, including Global Depositary Receipts (GDRs) and American Depositary Receipts (ADRs) denominated in US dollars, and Euro Depository Receipts (EDRs) denominated in euros.

 

Listing requirements

 

DRs listed and traded in London can be divided into two broad categories - professional DRs and retail DRs. They have different listing rules and target groups of investors.

 

Professional DRs are only traded by institutional investors, so UKLA's listing requirements for such DRs are relatively loose. Conversely, retail DRs can be traded by any investor, including private individuals. As a result, retail DR businesses require a higher level of investor protection and stricter listing requirements—basically the same as a direct listing.

 

Requirements for companies wishing to list depository certificates (DRs) in London include:

 

listing agent

 

Every company applying for a DR to list in London must be represented by a listing agent, usually an investment bank, stockbroker, law firm or accounting firm. Listing agents must meet certain qualification requirements and their functions include being responsible for liaison between companies and UKLA and providing guidance to companies throughout the listing process.

 

business records

 

Companies are usually required to have a business record of at least three years.

 

Deposit certificates held by the public

 

The DR should have a market value of at least £700,000 (~$1,000), and typically at least 25% of the DR is held by people not connected to the business.

 

Listing prospectus

 

Companies and their advisers must prepare a listing prospectus in accordance with the UKLA Listing Rules. The information provided in the listing prospectus must be sufficient to enable potential investors to make informed decisions about the listed company and its securities.

 

depositary bank

 

The depositary bank must be a UKLA approved financial institution whose function is to hold the relevant shares for DR holders.

 

continuing obligations

 

After a company is listed and traded in its GDRs, it must meet a number of obligations on an ongoing basis. These obligations include providing half-yearly financial statements and independently audited full-year financial statements within specified deadlines and publishing any price-sensitive information in time for the market.

 

bond

 

The UK Listing Authority (UKLA) sets out the rules and conditions for listing bonds in London. Regulations on Eurobonds are published separately and are available from UKLA.

 

Key requirements that must be met by issuers wishing to list bonds in London include:

 

listing agent

 

Every company applying to list bonds in London is represented by a listing agent, usually an investment bank, stockbroker, law firm or accounting firm. Listing agents must meet certain qualification requirements, and their functions include responsibility for liaison between the company and the competent authorities.

 

Two years of operating and financial records

 

Companies issuing non-convertible bonds should generally have at least two years of operating records and should be able to provide independently audited accounts for the last two years. However, if the bonds to be issued are fully guaranteed, contingently asset-backed, or guaranteed by the government of a sovereign country, or if the company itself complies with the basic UKLA listing requirements, the two-year operating record requirement can be waived.

 

Companies applying to list convertible securities should generally have at least three years of operating records (see below)

 

Listing Documents

 

The issuer must prepare a listing document in accordance with the requirements of the UKLA Listing Rules, stating the relevant information in English.transferability

 

Securities applying for listing must be freely transferable.

 

market value

 

Each bond applying for listing must have a market value of at least £200,000 (about $300,000).

 

All securities of the same class must be listed

 

In addition to listed securities, a listing application must cover all securities of the same class, including those issued and those applying for issuance. All securities of this class to be issued in the future must also be listed.

 

convertible securities

 

Companies issuing convertible bonds should generally have at least three years of operating records and should be able to submit independently audited accounts for the last three years.

 

In general, convertible securities are eligible to be listed and traded in London only if the securities that are the subject of the conversion are or will be one of the following:

 

· Bonds listed in London

 

· Securities are marketed in other open markets that are well regulated, accredited and functioning.

 

In certain circumstances, UKLA may approve the listing of convertible securities that do not meet these criteria. This can be done by convincing LSE that bondholders have all the relevant information to make an informed judgement about the value of the underlying security that is the subject of the conversion.

 

Mid-term Series Bonds

 

The conditions for listing the mid-term series bonds are similar to those for bonds.

 

The listing qualification of the mid-term series bonds is valid for one year and is subject to annual renewal.

 

continuing obligations

 

After a bond is listed and traded, the issuer must meet a series of obligations on an ongoing basis. These obligations include providing independently audited annual financial statements within specified deadlines and disclosing any price-sensitive information to the market in a timely manner

 

Investor Relations

 

    The listing of foreign companies on the London Stock Exchange, on the one hand, opens up the gateway to global capital and the international investment community, and on the other hand must accept the responsibilities and obligations that come with listing in London. One of these responsibilities and obligations is the regulatory requirements for all listed companies under the LSE's Approval Rules for Trading and the UK Listing Rules for listing. Others are the requirements and expectations placed on listed companies by the market mechanism itself. For example, analysts, investors and the media will pay attention to every company in the market and make judgments about its performance. The communication process with these groups is now commonly referred to as investor relations (IR).

 

    Fundamentally, Investor Relations (IR) is a long-term marketing operation through which public companies communicate with existing and potential investors. Like any other communication process, IR should be two-way.

 

    A well-planned and effective set of IR activities is essential for foreign companies to take full advantage of their London listing. This is why LSE has developed a suite of services, products, information and courses to support and enhance the IR strategies of foreign companies on an ongoing basis. The purpose of these services is to help public companies communicate with their investor base and deliver company news to the right people at the right time.

 

Investor Relations (IR) services at the London Stock Exchange

 

London Stock Exchange website

 

    With the Internet enabling low-cost global communications, it is no wonder that it is playing an increasingly critical role in maintaining communication between internationally listed companies and investors of all kinds around the world. To help listed companies use the World Wide Web (web) as effectively as possible, the London Stock Exchange's website (www.londonstockexchange.com) provides a comprehensive set of information, advice and third-party links to assist listed companies in developing and implementing their IR strategies. This includes how listed companies can use their own websites as part of their IR programmes, such as developing a dedicated IR area on the company's website.

 

    The LSE has also partnered with relevant industry organisations - including the Investor Relations Association - to develop a website on Best Practices for Investor Relations. The purpose of this website is to assist listed companies with the challenges they face when conducting IR on the Internet. This website is accessible via a link from the LSE website.

 

    The LSE's website, which has over 2 million hits a day, also provides investors with a set of free information to help support the IR work of listed companies. The stock market service provides investors with 15-minute delays in stock prices, index trends, rise and fall rankings, and basic information about listed companies.

 

 

 

International Company Briefing Service

 

    Once a foreign company has listed in London and has embarked on an IR programme, it needs a quick, convenient and cost-effective way to assess the impact of its ongoing IR initiatives on share trading activity. In response to this demand, the LSE provides free Internet-based International Briefings (ISR) services to all foreign listed companies. After listing, each foreign company has access to a special ISR page belonging to the company in a password-protected and secure area of ​​the LSE website, which provides some detailed data, including the number of trades in the company's shares in the previous month, and The number of shares traded.

 

 

 

website link

 

    Once a foreign company has listed in London and has embarked on an IR programme, it needs a quick, convenient and cost-effective way to assess the impact of its ongoing IR initiatives on share trading activity. In response to this demand, the LSE provides free Internet-based International Briefings (ISR) services to all foreign listed companies. After listing, each foreign company has access to a special ISR page belonging to the company in a password-protected and secure area of ​​the LSE website, which provides some detailed data, including the number of trades in the company's shares in the previous month, and The number of shares traded.

 

    One of the keys to the success of a foreign company's Internet IR strategy is to maximize hits to the company's website. Foreign companies listed in London can establish a link to their company's website on the LSE's website, significantly increasing the number of visits to their company's website. These links allow investors looking for information on the company on the LSE website to quickly and smoothly access the company's own IR pages. After establishing such links, many listed companies have found that the number of visits to the company's own website and the influence of the company's IR initiatives have increased significantly.

 

 

 

Specially designed business training services

 

    The LSE's regulatory system is recognized as a model of great reference value for other markets. The LSE's regulatory procedures, interactions with other competent authorities, and relationships with all market participants are also highly respected. These aspects of the London market are of great interest to many developing stock markets, as they are increasingly aware that the right regulatory framework is critical to their ability to attract international capital.

 

    In response to this demand in other markets, LSE has developed a number of tailor-made training courses for overseas authorities, company executives and company consultants. These courses cover multiple stock exchange areas and are offered individually based on close consultation with each individual client. Courses range from one-on-one training with LSE executives to group presentations of up to 70 people.

 

    These trainings are delivered by veritable experts in the UK or in the client's home market. The modular format of the course means that relevant content is available to different trainees. Courses can use "live markets", including real-time market data entry and advanced audio-visual equipment.

 

    Training costs ε2,500 + GST ​​per day for groups of up to six people (plus accommodation and airfare if done outside the UK). For larger groups, we will increase the number of training consultants and negotiate appropriate fees for specific services.

 

 

 

Listing ceremony

 

    When a foreign company is listed on the London Stock Exchange, it has the right to hold a listing ceremony on or around the trading commencement date. These ceremonies are not only to celebrate a company's listing on the LSE, but can also be used to kick off a company's IR campaign. In addition, listed on the London market