06: Deciding the flotation type

There are different types of flotation, including:

An introduction The simplest and cheapest option, which involves raising no capital. It is often used if a company is already publicly listed on AIM or PLUS and wants to switch to the main London Stock Exchange.

Private placement In a private placement, shares are offered to selected institutional investors. This allows you to raise capital with lower costs, although a reduced shareholder base may lead to a reduced market in future.

Initial public offer (IPO) IPO shares are offered to the public and investing institutions. This can help raise more capital, but is the most expensive route to market. You will need to prepare a prospectus which contains all the key information about your company and the share offering.