|
Published by: Telegraph
The London Stock Exchange is attempting to beat Nasdaq at its own game by hosting its first roadshow for American companies to meet British bankers in London.
The LSE, which rejected Nasdaq's £12.43-a-share offer, will use the roadshow to reinforce the advantages of London as a centre for international listings.
It will build on work done by the LSE's Aim team in North America, which has involved substantial marketing and has seen a number of US banks such as Jefferies and Bear Stearns apply to become nominated advisers (nomads) to Aim.
The roadshow, due to take place at the LSE's Paternoster Square headquarters on Tuesday, will allow 10 pre-IPO US companies to meet brokers and nomads from across the Square Mile.
It is understood at least five are technology firms, the very firms that should find a natural home within Nasdaq.
But due to the structure of the American markets – which are heavily skewed to larger companies – a growing number of US companies are looking at listing in London. Such companies fear were they to list on Nasdaq or the New York Stock Exchange they would risk becoming so-called "orphan stocks", which have no research coverage and little liquidity.
Aim itself already has 48 American companies on its books, with some fleeing the severe requirements of Sarbanes-Oxley, while others hope for greater visibility from a London quote.
The roadshow was organised by Anglo-American investment house MG Equity Partners in association with the LSE. Amir Raveh, MG's managing partner, believes the LSE offers a viable alternative to listing on Nasdaq or the NYSE. He said: "US companies with a market capitalisation of up to $250m (£127m) will find an Aim listing an extremely attractive option for raising growth capital without having to deal with the onerous Sarbanes-Oxley requirements in their home market."
The roadshow will be addressed by the LSE's senior manager of international business development Graham Dallas, as well as Andrew Cahn of UK Trade and Investment.
Shares in the LSE slipped 5p to £13.06 yesterday but remain above the psychologically important £13 mark, some way above the Nasdaq offer price.
|