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Capital Markets

The process of selectingthe most appropriate exchange for yourbusiness to list its sharesis challenging andcomplex. Understandingthe differences among global exchangesand determining theexchange that best fitsthe unique needs of yourbusiness are key aspectsof a successful listing

Which market? An overview of London, New York and Hong Kong stock exchanges

In recent years, a number of factors have been driving an upward trend in global equity issuance. As markets and businesses become increasingly global, the decision of choosing the most appropriate exchange becomes more challenging. A number of factors must be considered in determining the best option, and planning early can help your company comply with listing and regulatory requirements.

To help you determine which option is best for your company, we have highlighted some of the factors to consider and explained some of the high-level differences among the largest stock exchanges located in London, New York and Hong Kong.

Where to list

Admission / eligibility criteria• Thiscriteriamaybedifficulttoachieveasthepre-listingregulatoryreviewrequirementsvary

bymarket.

• Costsoflistingvaryineachmarket.

Valuation• Certainindustriesandtypesofcompaniesmayachievefavorablevaluations

incertainmarkets,duetocompetitorsandotherrecentlistingsofpeercompanies.

Location of holding company and trading operations

• Thecompany’scorebusinesslocationsmayaffecttheappetiteforitsequity,oftendrivingadomesticlisting.

• Thestageofdevelopmentofyourbusinessmaymakeitmoresuitableforaparticularmarket.Acompanywishingtoenteranewmarketorgaingreaterrecognitioninthatmarketmaychoosetolistinthatmarketasawaytogetexposuretonewcustomers,vendorsandshareholders.

• Taxationconsiderationscanimpactthelocationoftheholdingcompany.

Market and stakeholder relations• Investorandanalystbriefings,aswellasinterestinthebusiness,canvary

indifferentlocations.

• Expectationsofotherstakeholders,suchasbankersandemployees,canbeafactor.

Continuing obligations

• Differencesexistinpost-listingcomplianceobligationsamongmarketsandmayhavevaryingcostimplications,forinstance,requirementsrelatedtoXBRL,semi-annualandotherinterimreportingandreportingoninternalcontrols.

• Markets’regulatoryframeworks,includingcorporategovernancerequirements,mayhavebusinessimplications.

Other factors

• Tradingvolumesandliquidityoftheunderlyingsharescanvaryindifferentlocations.

• Proceedsintheacquisitioncurrencymayberequiredforbusinessdevelopmentincertainlocations.

• Incertainlocationsthereismorethanonemarket.Whichoneismostsuitableforyourcompany?

• Ifinclusioninmarketindicesisimportant,thismayrestrictthemarketchoicesavailable.

• Employeesmaydesireoptionsinaparticularmarket.

Some factors to consider include:

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4 | Which market? AnoverviewofLondon,NewYorkandHongKongstockexchanges

Overview of key regulatory requirements

1. A number of advisors will be involved in helping you successfully list your company. The Sponsor is typically the appointed investment bank that co-ordinates the overall project management of the IPO process.

2. Free float is the number of company shares traded on a market that are held by investors likely to be willing to trade.3. If the company chooses to include a profit forecast, the listing registration document must contain the principal assumptions upon which the company

LSE (Premium Listing) NYSE NASDAQ (Global Select) HKEX (Main Board)

Initial listing criteria

Sponsor1 Required Notrequired Notrequired Required

Audited track record 3yearsauditedaccounts,nomorethan6monthsold

3yearsauditedaccounts,nomorethan9monthsold.Foremerginggrowthcompanies(EGCs)undertheJOBSAct,2yearsofauditedfinancialstatementsarepermitted

3yearsauditedaccounts,nomorethan9monthsold.Foremerginggrowthcompanies(EGCs)undertheJOBSAct,2yearsofauditedfinancialstatementsarepermitted

3yearsauditedaccounts,nomorethan6monthsold

Accounting standard

EUIFRSorIFRSequivalentfornon-EUissuers USGAAPorIFRS USGAAPorIFRS HKFRS,IFRS,CASBE(forPRCissuersonly),USGAAPorotheraccountingstandardsmaybeacceptedincertaincircumstances

Financial criteria Atleast75%oftheentity’sbusinessmustbesupportedbyarevenueearningstrackrecordforthe3yearperiod(somedispensationforspecificindustriese.g.mining)

Minimummarketcapatadmission–£700,000

Companyneedstomeetoneofthefinancialcriteria:

i)Incomebeforetaxfromcontinuingoperationsandafterminorityinterest,amortisationandequityinearningsorlossesofinvestees(subjecttocertainadjustments)musttotalatleast•US$10minaggregateforlast3fiscalyears,togetherwithaminimumof

US$2mineachofthe2mostrecentfiscalyears,andpositiveamountsinall3years

OR•US$12mintheaggregateforthelast3fiscalyears,togetherwithaminimumof

US$5minthemostrecentfiscalyearandUS$2minthenextmostrecentfiscalyear

ii)Issuermusthaveatleast

•US$500minglobalmarketcap,•US$100minrevenuesduringthemostrecent12monthperiod,and•US$25minaggregatecashflowsforthelast3fiscalyearswithpositive

amountsinall3years(subjecttocertainadjustments)OR

•US$750minglobalmarketcap,and•US$75minrevenuesduringthemostrecentfiscalyear

iii)Issuermusthaveatleast

•US$150minglobalmarketcap,and•US$75mintotalassetstogetherwithatleastUS$50minstockholders’equity

(ineachcasesubjecttocertainadjustments)

Companyneedstomeetoneofthefinancialstandards:

i)•Minimumincomefromcontinuingoperationsbeforeincometaxesof:–US$11moverprior3fiscalyearsinaggregate,and–US$2.2mineachofthe2mostrecentfiscalyears,

•Positiveincomefromcontinuingoperationsbeforeincometaxesineachoftheprior3fiscalyears,and

•Bidprice-US$4

ii)•Minimumtotalrevenueinthepreviousfiscalyear–US$110m,•Minimumaveragemarketcapovertheprior12months–US$550m,•MinimumcashflowsofUS$27.5movertheprior3fiscalyearsinaggregate,•Positivecashflowsineachoftheprior3fiscalyears,and•Bidprice-US$4

iii)•Minimumtotalrevenueinthepreviousfiscalyear–US$90m,•Minimumaveragemarketcapovertheprior12months–US$850m,and•Bidprice-US$4

iv)•Minimumaveragemarketcapatthetimeoflisting–US$160m,•US$80moftotalassetsandUS$55mofstockholders’equityinthemostrecent

publiclyreportedfinancialstatements,and•Bidprice-US$4

Companyneedstomeetoneofthefinancialcriteria:

i)•ProfitofatleastHK$20mforthemostrecentfinancialyear,•ProfitinaggregateofatleastHK$30mforthetwopreceding

financialyears,and•MarketcapofatleastHK$200mattimeoflisting

ii)•MarketcapofatleastHK$2bnattimeoflisting,•RevenueofatleastHK$500mforthemostrecentfinancialyear,and•PositiveoperatingcashflowsofatleastHK$100minaggregate

for3financialyears

iii)•MarketcapofatleastHK$4bnattimeoflisting,and•RevenueofatleastHK$500mforthemostrecentfinancialyear

Profit forecast Optional3 Norequirements Norequirements Optional3

PrivateprofitforecastmemorandumfortheremainderofthefinancialyearrequiredtobesubmittedtoHKEXforreview

Working capital statements

Covering12months Notrequired Notrequired Covering12months

Ownership of assets

Controloverthemajorityofassetsforthe3yearperiod

Norequirements Norequirements Ownershipcontinuityforatleastthemostrecentauditedfinancialyear

Minimum number of shareholders

Norequirements 400roundlot4shareholders 450roundlot4shareholdersor2,200totalshareholders* 300

Minimum free float (or public float)2

25%ofclassofshareslisted 1,100thousandshares 1,250thousandshares,US$45mmarketvalueofpubliclyheldshares* 25%oratleastHKD50m;ifmarketcap.>HKD10bn,canbereducedto15%

Internal controls/financial reporting procedures

Sponsor’sdeclarationonadequacyoffinancialreportingprocedures,withtheprivatereportingaccountant’sreport

CEO/CFOcertificationofeffectivenessofinternalcontrolsoverfinancialreporting,withtheexternalauditor’sattestationreportinthesecondannualfiling.Emerginggrowthcompaniesmayelecttofollowanextendedphase–inperiodofuptofiveyearsontherequirementofanauditor’sattestationreportoninternalcontrols

CEO/CFOcertificationofeffectivenessofinternalcontrolsoverfinancialreporting,withtheexternalauditor’sattestationreportinthesecondannualfiling.Emerginggrowthcompaniesmayelecttofollowanextendedphase–inperiodofuptofiveyearsontherequirementofanauditor’sattestationreportoninternalcontrols

Sponsor’sdeclarationonadequacyoffinancialreportingprocedures,supportedbyprivateinternalcontrolsconsultant’sreport

Regulatory and ongoing obligation requirements

Special criteria for international issuers

• Non-UKincorporatedcompaniesmusthavemorethan50%freefloatforFTSEUKindicesinclusion

• If200ormoreshareholdersor10%ormoresharesheldbyUKshareholders,requiredtoappointaregistrarintheUK

AForeignPrivateIssuermustbe:

• aforeign(non-US),non-governmentissuer• 50%ofoutstandingvotingsecuritiesorlessheldbyUSresidents-ifmorethan50%,

mustnot- haveamajorityofitsdirectorswhoareUSresidents- havemorethan50%ofitsassetslocatedintheUS- administeritsbusinessprincipallyintheUS

• Differentminimumdistributionrequirements,marketvaluerequirementandfinancialstandardsareapplied(5,000roundlotshareholders,atleast2.5mpubliclyheldsharesworldwidewithmarketvalueatleastUS$100m)

• MustregistertheclassofsecuritiesitintendstolistwithSECbyfilingaregistrationstatement(Form20-F)5

AForeignPrivateIssuermustbe:

• aforeign(non-US),non-governmentissuer• 50%ofoutstandingvotingsecuritiesorlessheldbyUSresidents-ifmorethan50%,

mustnot- haveamajorityofitsdirectorswhoareUSresidents- havemorethan50%ofitsassetslocatedintheUS- administeritsbusinessprincipallyintheUS

MustregistertheclassofsecuritiesitintendstolistwithSECbyfilingaregistrationstatement(Form20-F)

• Mustbeincorporatedinan“acceptablejurisdiction”assessedonacase-by-casebasis

• MustappointaprocessagentinHKtoacceptnotices• Mustappointatleastoneauthorizedrepresentativeastheprincipal

channelofcommunicationbetweenforeignissuerandHKEX• MustkeeparegisterofholdersinHKfortransferstoberegistered

locally(notrequiredforlistingofdepositoryreceipts)

• Mustberegisteredasanon-HKcompanyundertheHKCompaniesOrdinance

Financial reporting requirements

• Annual• Half-yearly• Interimmanagementstatement

• Annual• Quarterly5

• Annual• Quarterly5

• Annual• Half-yearly• Quarterly(optional)

Regulatory authority FSA/UKLA SEC SEC HKEX,SecuritiesandFuturesCommission(SFC)

Major transaction pre-approval by the shareholders

Approvalisrequiredforsignificant(>25%)acquisitionsanddisposalsandmaterial(>5%)relatedpartytransactions

• Issuancesresultinginachangeofcontrol• Equitycompensationplans• Priortotheissuanceofsecuritiesinanytransactiontoadirectorofthecompany,

subsidiary,affiliateorothercloselyrelatedpersonofaRelatedParty;oranycompanyorentityinwhichaRelatedPartyhassubstantialinterest

• Priortotheissuanceofsecuritiesinanytransactionifthevotingpoweris≥20%ofthevotingpoweroutstandingbeforetheissuanceor≥5%ofthepre-transactionoutstandingshares(undercertainconditionsapprovalisnotrequired)

• Acquisitionswheretheissuance≥20%ofthepre-transactionoutstandingshares,or≥5%ofthepre-transactionoutstandingshareswhenarelatedpartyhasa5%orgreaterinterestintheacquisitiontarget

• Issuancesresultinginachangeofcontrol• Equitycompensationplans• Privateplacementswheretheissuance(togetherwithsalesbyofficers,directors,or

substantialshareholders,ifany)≥20%ofthepre-transactionoutstandingsharesatapricelessthanthegreaterofbookormarketvalue

Approvalisrequiredformajorandverysubstantial(>25%)acquisitionsanddisposalsandlarge(>5%)connectedpartytransactions,subjecttocertainexemptions

PwC | 5

has based its forecast and be publicly reported upon by the independent accountant.4 Round lot is the term used for a normal unit of trading, which is 100 shares.5. Foreign private issuers are not required to file quarterly reports, however, many FPIs follow market practice and publish quarterly reports volunterily.* These are liquidity requirements for IPOs on NASDAQ Global Select market.

LSE (Premium Listing) NYSE NASDAQ (Global Select) HKEX (Main Board)

Initial listing criteria

Sponsor1 Required Notrequired Notrequired Required

Audited track record 3yearsauditedaccounts,nomorethan6monthsold

3yearsauditedaccounts,nomorethan9monthsold.Foremerginggrowthcompanies(EGCs)undertheJOBSAct,2yearsofauditedfinancialstatementsarepermitted

3yearsauditedaccounts,nomorethan9monthsold.Foremerginggrowthcompanies(EGCs)undertheJOBSAct,2yearsofauditedfinancialstatementsarepermitted

3yearsauditedaccounts,nomorethan6monthsold

Accounting standard

EUIFRSorIFRSequivalentfornon-EUissuers USGAAPorIFRS USGAAPorIFRS HKFRS,IFRS,CASBE(forPRCissuersonly),USGAAPorotheraccountingstandardsmaybeacceptedincertaincircumstances

Financial criteria Atleast75%oftheentity’sbusinessmustbesupportedbyarevenueearningstrackrecordforthe3yearperiod(somedispensationforspecificindustriese.g.mining)

Minimummarketcapatadmission–£700,000

Companyneedstomeetoneofthefinancialcriteria:

i)Incomebeforetaxfromcontinuingoperationsandafterminorityinterest,amortisationandequityinearningsorlossesofinvestees(subjecttocertainadjustments)musttotalatleast•US$10minaggregateforlast3fiscalyears,togetherwithaminimumof

US$2mineachofthe2mostrecentfiscalyears,andpositiveamountsinall3years

OR•US$12mintheaggregateforthelast3fiscalyears,togetherwithaminimumof

US$5minthemostrecentfiscalyearandUS$2minthenextmostrecentfiscalyear

ii)Issuermusthaveatleast

•US$500minglobalmarketcap,•US$100minrevenuesduringthemostrecent12monthperiod,and•US$25minaggregatecashflowsforthelast3fiscalyearswithpositive

amountsinall3years(subjecttocertainadjustments)OR

•US$750minglobalmarketcap,and•US$75minrevenuesduringthemostrecentfiscalyear

iii)Issuermusthaveatleast

•US$150minglobalmarketcap,and•US$75mintotalassetstogetherwithatleastUS$50minstockholders’equity

(ineachcasesubjecttocertainadjustments)

Companyneedstomeetoneofthefinancialstandards:

i)•Minimumincomefromcontinuingoperationsbeforeincometaxesof:–US$11moverprior3fiscalyearsinaggregate,and–US$2.2mineachofthe2mostrecentfiscalyears,

•Positiveincomefromcontinuingoperationsbeforeincometaxesineachoftheprior3fiscalyears,and

•Bidprice-US$4

ii)•Minimumtotalrevenueinthepreviousfiscalyear–US$110m,•Minimumaveragemarketcapovertheprior12months–US$550m,•MinimumcashflowsofUS$27.5movertheprior3fiscalyearsinaggregate,•Positivecashflowsineachoftheprior3fiscalyears,and•Bidprice-US$4

iii)•Minimumtotalrevenueinthepreviousfiscalyear–US$90m,•Minimumaveragemarketcapovertheprior12months–US$850m,and•Bidprice-US$4

iv)•Minimumaveragemarketcapatthetimeoflisting–US$160m,•US$80moftotalassetsandUS$55mofstockholders’equityinthemostrecent

publiclyreportedfinancialstatements,and•Bidprice-US$4

Companyneedstomeetoneofthefinancialcriteria:

i)•ProfitofatleastHK$20mforthemostrecentfinancialyear,•ProfitinaggregateofatleastHK$30mforthetwopreceding

financialyears,and•MarketcapofatleastHK$200mattimeoflisting

ii)•MarketcapofatleastHK$2bnattimeoflisting,•RevenueofatleastHK$500mforthemostrecentfinancialyear,and•PositiveoperatingcashflowsofatleastHK$100minaggregate

for3financialyears

iii)•MarketcapofatleastHK$4bnattimeoflisting,and•RevenueofatleastHK$500mforthemostrecentfinancialyear

Profit forecast Optional3 Norequirements Norequirements Optional3

PrivateprofitforecastmemorandumfortheremainderofthefinancialyearrequiredtobesubmittedtoHKEXforreview

Working capital statements

Covering12months Notrequired Notrequired Covering12months

Ownership of assets

Controloverthemajorityofassetsforthe3yearperiod

Norequirements Norequirements Ownershipcontinuityforatleastthemostrecentauditedfinancialyear

Minimum number of shareholders

Norequirements 400roundlot4shareholders 450roundlot4shareholdersor2,200totalshareholders* 300

Minimum free float (or public float)2

25%ofclassofshareslisted 1,100thousandshares 1,250thousandshares,US$45mmarketvalueofpubliclyheldshares* 25%oratleastHKD50m;ifmarketcap.>HKD10bn,canbereducedto15%

Internal controls/financial reporting procedures

Sponsor’sdeclarationonadequacyoffinancialreportingprocedures,withtheprivatereportingaccountant’sreport

CEO/CFOcertificationofeffectivenessofinternalcontrolsoverfinancialreporting,withtheexternalauditor’sattestationreportinthesecondannualfiling.Emerginggrowthcompaniesmayelecttofollowanextendedphase–inperiodofuptofiveyearsontherequirementofanauditor’sattestationreportoninternalcontrols

CEO/CFOcertificationofeffectivenessofinternalcontrolsoverfinancialreporting,withtheexternalauditor’sattestationreportinthesecondannualfiling.Emerginggrowthcompaniesmayelecttofollowanextendedphase–inperiodofuptofiveyearsontherequirementofanauditor’sattestationreportoninternalcontrols

Sponsor’sdeclarationonadequacyoffinancialreportingprocedures,supportedbyprivateinternalcontrolsconsultant’sreport

Regulatory and ongoing obligation requirements

Special criteria for international issuers

• Non-UKincorporatedcompaniesmusthavemorethan50%freefloatforFTSEUKindicesinclusion

• If200ormoreshareholdersor10%ormoresharesheldbyUKshareholders,requiredtoappointaregistrarintheUK

AForeignPrivateIssuermustbe:

• aforeign(non-US),non-governmentissuer• 50%ofoutstandingvotingsecuritiesorlessheldbyUSresidents-ifmorethan50%,

mustnot- haveamajorityofitsdirectorswhoareUSresidents- havemorethan50%ofitsassetslocatedintheUS- administeritsbusinessprincipallyintheUS

• Differentminimumdistributionrequirements,marketvaluerequirementandfinancialstandardsareapplied(5,000roundlotshareholders,atleast2.5mpubliclyheldsharesworldwidewithmarketvalueatleastUS$100m)

• MustregistertheclassofsecuritiesitintendstolistwithSECbyfilingaregistrationstatement(Form20-F)5

AForeignPrivateIssuermustbe:

• aforeign(non-US),non-governmentissuer• 50%ofoutstandingvotingsecuritiesorlessheldbyUSresidents-ifmorethan50%,

mustnot- haveamajorityofitsdirectorswhoareUSresidents- havemorethan50%ofitsassetslocatedintheUS- administeritsbusinessprincipallyintheUS

MustregistertheclassofsecuritiesitintendstolistwithSECbyfilingaregistrationstatement(Form20-F)

• Mustbeincorporatedinan“acceptablejurisdiction”assessedonacase-by-casebasis

• MustappointaprocessagentinHKtoacceptnotices• Mustappointatleastoneauthorizedrepresentativeastheprincipal

channelofcommunicationbetweenforeignissuerandHKEX• MustkeeparegisterofholdersinHKfortransferstoberegistered

locally(notrequiredforlistingofdepositoryreceipts)

• Mustberegisteredasanon-HKcompanyundertheHKCompaniesOrdinance

Financial reporting requirements

• Annual• Half-yearly• Interimmanagementstatement

• Annual• Quarterly5

• Annual• Quarterly5

• Annual• Half-yearly• Quarterly(optional)

Regulatory authority FSA/UKLA SEC SEC HKEX,SecuritiesandFuturesCommission(SFC)

Major transaction pre-approval by the shareholders

Approvalisrequiredforsignificant(>25%)acquisitionsanddisposalsandmaterial(>5%)relatedpartytransactions

• Issuancesresultinginachangeofcontrol• Equitycompensationplans• Priortotheissuanceofsecuritiesinanytransactiontoadirectorofthecompany,

subsidiary,affiliateorothercloselyrelatedpersonofaRelatedParty;oranycompanyorentityinwhichaRelatedPartyhassubstantialinterest

• Priortotheissuanceofsecuritiesinanytransactionifthevotingpoweris≥20%ofthevotingpoweroutstandingbeforetheissuanceor≥5%ofthepre-transactionoutstandingshares(undercertainconditionsapprovalisnotrequired)

• Acquisitionswheretheissuance≥20%ofthepre-transactionoutstandingshares,or≥5%ofthepre-transactionoutstandingshareswhenarelatedpartyhasa5%orgreaterinterestintheacquisitiontarget

• Issuancesresultinginachangeofcontrol• Equitycompensationplans• Privateplacementswheretheissuance(togetherwithsalesbyofficers,directors,or

substantialshareholders,ifany)≥20%ofthepre-transactionoutstandingsharesatapricelessthanthegreaterofbookormarketvalue

Approvalisrequiredformajorandverysubstantial(>25%)acquisitionsanddisposalsandlarge(>5%)connectedpartytransactions,subjecttocertainexemptions

6 | Which market? AnoverviewofLondon,NewYorkandHongKongstockexchanges

Stock exchange

Overview Market Admitable securities

Main indices

LondonStockExchange(LSE)

TheLSE’sMainMarketistheprincipalmarketforUKandinternationallistedcompanies,fromallindustriesandsectors.

TheMainMarketaccommodatestheadmissionofcompaniestotradingonthePremium,HighGrowthSegmentorStandardmarkets(equityorGlobalDepositaryReceipts(GDRs)).APremiumListingentailshighercomplianceanddisclosurerequirementsthantheEUminimumstandardsforHighGrowthSegmentandStandardListings(equityorGDRs).

Main • Equities

• DRs

• FTSEseries–opentointernationalissuers

• FTSE100

• FTSE250

• FTSEAll-Share

• FTSEtechMark

• FTSERussiaIOB–top15RussianGDRs

AIMistheLSE’sinternationalmarketforsmallerhighgrowthcompanies.

AIM • Equities TheFTSEAIMIndexSeriesincludes

• FTSEAIMUK50Index,

• FTSEAIM100Index,

• FTSEAIMAll-ShareIndex

• FTSEAIMAll-ShareSupersectorIndices

NYSEEuronext(US)

TheNYSEisownedandoperatedbyNYSEEuronext,itrepresentsone-thirdoftheworld’sequitiestrading.

NYSE • Equities

• DRs

• DowJonesIndustrial

• NYSEComposite

• NYSEU.S.100

• S&P500

NASDAQOMX

NASDAQisknownforattractinghighgrowthcompaniesinparticularinthetechnologysector,includingbio-technologyandbio-pharmaceuticals.TherearethreedifferentmarketswithinNASDAQ:NASDAQGlobalSelectMarket,NASDAQGlobalMarketandNASDAQCapitalMarket.NASDAQGlobalSelectMarketprescribesthehighestinitiallistingrequirements.

NASDAQ • Equities

• DRs

• NASDAQ100

• NASDAQOMX100

• NASDAQGlobalSelectMarketcomposite

• S&P500

HongKongExchange(HKEX)

TheHKEXMainBoardissuitableforestablishedcompaniesthatmeetprofitorotherfinancialrequirements.

Main • Equities

• DRs

• HangSengIndex

TheGrowthEnterpriseMarket(GEM)isdesignedforgrowthcompanies.

GEM • Equities

Source: World Federation of Exchanges, exchange statistics, Dealogic, Thomson One

Stock exchanges overview and vital statistics

LSE

NYSE

NASDAQ

HKEX258

12

59

58

92

223

223

116

Иностранные компании Локальные эмитенты

LSE

NASDAQ

NYSE

HKEX

133,9

141,8

54,8

45,9

HKEX

NYSE

LSE

NASDAQ

Иностранные компании Локальные эмитенты

2 287

290

530

524

88

1 930

1 815

1 460HKEX

NASDAQ

LSE

NYSE 19 916

5 718

4 858

2 831

PwC | 7

Total market capitalisation as at 31 December 2012 (US $bn)

Sector split by number of IPOs during the five years ended 31 December 2012*

* Closed-end funds excluded

Source: Federation of Exchanges, exchange statistics, Dealogic, Thomson One

18%

5%

6%

10%

15%6%

22%

16%

1%1%

LSE

15%

2%

23%

4%

15%

22%

12%

5% 2%

HKEK

6%3%

6%

13%

18%

16%

23%

13%

2%

NYSE

18%

5%

16%

8%20%

27%

5% 1%

NASDAQ

Basic materials Health care Consumer goods Consumer services Industrials

Technology Financials Oil and gas Telecommunications Utilities

Number of listed companies as at 31 December 2012

Total money raised at admission during the five years ended at 31 December 2012 (US $bn)*

Number of listed companies during the five years ended December 2012*

Other considerations

While the key considerations we have discussed in this document will be your primary decision factors when considering “which market,” there are other less tangible factors that may also play a role, such as:• Political environment• Commercial / business environment• Location of existing stakeholders• Domestic regulatory environment• Personal preferences of current shareholders• The equity story to be told / the “value proposition”• Longer term plans• Taxation implications• Listing currency considerations

Because of these many and varied factors, the decision as to which market to select can be complex. Engaging experienced advisors with a global presence and knowledge of the capital markets can help you determine the market that is best suited to your needs, anticipate issues, avoid delays and otherwise navigate successfully through the life cycle of your capital market transaction. Using an advisor who is experienced with the multiple elements of the transaction process, along with having the ability to advise on technical accounting and financial reporting complexities associated with the process of going public, will allow you to focus more time on the marketing phase of the deal and ongoing management of your business.

To talk more about your company’s capital market needs, please contact your PwC relationship partner or learn more at

www.pwc.ru/capital-markets

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03.04.2015