Planning and company

Table of contents

Careful planning is required in initial public offerings (IPO) and a company must make the right market choice. There are a number of factors a company must consider in this process. The company must look into how accessible the potential investors are. Profile of benchmarked companies on the stock exchange is as important as the requirements to the entry of the company into the market and the level of monitoring going on and requirements for disclosure. By their very nature, a quoted company’s shares are available to the public.

The main aim of the company when it advertises for the shares is to reach as many investors as possible. Not only have to have that but the investors needed to be convinced that the company is worth investing in. The company therefore avails detailed financial and management information before being given admission to the market. In a bid to attract many customers with a lower price, the company ends up quoting a price of the share far much below its market value thus underpricing it.

This under pricing leads to anomalous first-day trading profits in initial public offerings as the share prices shoot abnormally on the first day as they are floated on the stocks market. This initial return, it’s understood, is more often money left on the table because the shares could still have been sold at a higher price hence raising more funds for the same stake in the company. We have seen that the company must choose the type of market to offload its share when it is planning its initial public offering. There are several markets in which this offering can take place.

However, there are several factors that will determine the primary decision made by the company. These factors are influenced by the fact that the markets provide the company with an opportunity to familiarize itself in the midst of the disclosure specifications and functionalities in exposing for communal companies. As a point of concern, the size of the Company is very important. This is because smaller companies will find that AIM market is best for them while the largest companies will find the Main Market suitable.

Hence the size of the company is an important factor in the determination of which market to offload the shares. Another factor is the age of the company since it’s more usual to float shares on the AIM market while it would need to have operated for at least three years to enter the Main market. The time and cost are very important because the drain on the management time and the floating cost must be considered. As a general rule, if the market is bigger then the disclosure will be more onerous and the professional costs will also be higher.

Lastly, the company’s objectives of seeking the floatation must be put into consideration because the conflicting needs of the business and the owners have a direct impact on the choice of markets, float method and choice of advisers. IPO Main market Capitalization In the main market we have 214 companies. Market capitalisation= 103562. 0071 million pounds The UK listing Authority has a requirement that for a company to be listed on the main market, among other things, it must have a minimum market capitalisation on issue of ?

700,000. If this is put into consideration, the companies that are not qualified for listing on the main market are… and those qualified are.

Under pricing of Initial Public Offering in the UK

A comparison between the Main market and the AIM market Data needed: Actual data of London Stock Exchange IPOs including Year 2004-2007. Data should be separated into 3 categories:

  • AIM IPO: companies that are qualified for Main market listing criteria but choose to enter AIM instead
  • AIM IPO: companies that doesn’t qualified for main market listing criteria with each company of all categories, the following data need to be obtained:
    • First day return
    • Initial return
    • Market capital


  1. http://www. quotedcompaniesalliance. co. uk/market_comparison. asp
  2. http://www. rdg. ac. uk/Econ/Econ/workingpapers/emdp388. pdf
  3. Listing on the London Stock Exchange. URL http://www. londonstockexchange. com/NR/rdonlyres/2139CB47-DE3A-4A98-B3A5-49B9A01CAD0D/0/ListingaUKREIT. pdf March 5, 2008

Calculate the price
Make an order in advance and get the best price
Pages (550 words)
*Price with a welcome 15% discount applied.
Pro tip: If you want to save more money and pay the lowest price, you need to set a more extended deadline.
We know how difficult it is to be a student these days. That's why our prices are one of the most affordable on the market, and there are no hidden fees.

Instead, we offer bonuses, discounts, and free services to make your experience outstanding.
How it works
Receive a 100% original paper that will pass Turnitin from a top essay writing service
step 1
Upload your instructions
Fill out the order form and provide paper details. You can even attach screenshots or add additional instructions later. If something is not clear or missing, the writer will contact you for clarification.
Pro service tips
How to get the most out of your experience with MyhomeworkGeeks
One writer throughout the entire course
If you like the writer, you can hire them again. Just copy & paste their ID on the order form ("Preferred Writer's ID" field). This way, your vocabulary will be uniform, and the writer will be aware of your needs.
The same paper from different writers
You can order essay or any other work from two different writers to choose the best one or give another version to a friend. This can be done through the add-on "Same paper from another writer."
Copy of sources used by the writer
Our college essay writers work with ScienceDirect and other databases. They can send you articles or materials used in PDF or through screenshots. Just tick the "Copy of sources" field on the order form.
See why 20k+ students have chosen us as their sole writing assistance provider
Check out the latest reviews and opinions submitted by real customers worldwide and make an informed decision.
Human Resources Management (HRM)
excellent work
Customer 452773, July 3rd, 2023
ACC/543: Managerial Accounting & Legal Aspects Of Business
Customer 452773, January 10th, 2024
Business and administrative studies
Excellent job
Customer 452773, March 9th, 2023
Business and administrative studies
Customer 452773, February 23rd, 2023
Business and administrative studies
Thank you for your hard work and effort. Made a 96 out of 125 points Lacked information from the rubic
Customer 452773, October 27th, 2023
Business and administrative studies
Excellent job
Customer 452773, March 17th, 2023
Business and administrative studies
Customer 452773, March 3rd, 2023
Criminal Justice
This has been the greatest help while I am recovering from an illness. Thank your team so much.
Customer 452671, May 2nd, 2021
Business and administrative studies
excellent, got a 100
Customer 452773, May 17th, 2023
Social Work and Human Services
Although it took 2 revisions I am satisfied but I did receive it late because of that.
Customer 452603, March 25th, 2021
Business and administrative studies
Thank you
Customer 452773, March 19th, 2023
Business and administrative studies
great job as always
Customer 452773, February 26th, 2023
Customer reviews in total
Current satisfaction rate
3 pages
Average paper length
Customers referred by a friend
15% OFF your first order
Use a coupon FIRST15 and enjoy expert help with any task at the most affordable price.
Claim my 15% OFF Order in Chat

Sometimes it is hard to do all the work on your own

Let us help you get a good grade on your paper. Get professional help and free up your time for more important courses. Let us handle your;

  • Dissertations and Thesis
  • Essays
  • All Assignments

  • Research papers
  • Terms Papers
  • Online Classes
Live ChatWhatsApp