Floating on a stock market: your options

Choose the right market

There are three main options when floating your business - PLUS market, the Alternative Investment Market (AIM) or a full listing on the Stock Exchange Main Market.

PLUS

• Aimed at smaller companies wanting to raise up to £10 million.
• Regulated, but requirements are not as stringent as those of AIM or the Main Market.
• Flotation and ongoing costs are lower than AIM or the Main Market.
• Pool of investors primarily limited to private investors, although this may change.

AIM

• No prior trading record required.
• Higher profile than PLUS, with more interest from the investment community.
• Part of London Stock Exchange, but with more flexible regulatory environment than the Main Market.
• AIM-listed companies are attractive to a wide range of investors, including institutional investors.
• No minimum percentage of shares needs to be made available.
• Nominated adviser required at all times.
• If trading for less than two years, existing shareholders can't sell their shares until at least one year after flotation.

Stock Exchange Main Market

• Only suitable for the largest companies.
• The company needs to have been trading for at least three years.
• Minimum of 25 per cent of the company's equity must be floated.
• Widest possible audience of potential investors.
• Professional fees and costs much higher than for flotations on PLUS or AIM.
• Stringent regulatory requirements.
• Shareholder approval needed for some transactions.
• Admission documents need to be pre-vetted by the UK Listing Authority.

Read about the PLUS market on the PLUS website - Opens in a new window. You can find out about AIM and the Stock Exchange Main Market on the London Stock Exchange website - Opens in a new window.

Choosing the right market for your float is crucial. Your advisers will be able to identify the most suitable market for your business and guide you through the complex legal process. For more information on choosing your advisers, see the page in this guide on how to appoint your advisers.

Subjects covered in this guide

• Introduction
• Is your business suitable for flotation?
• What is a flotation and why consider it?
• Advantages and disadvantages of flotation
• Choose the right market
• Appoint your advisers
• Prepare for a flotation
• Price your business' flotation
• The flotation process
• Here's how we prepared our business for flotation

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