I'm thinking about an IPO
The UK public markets for growing and larger companies, and the main private alternative.
Listing on a stock market lets you raise money from public investors and makes your shares easier to trade. In return you take on ongoing rules, costs and public scrutiny.
In the UK, growing companies often look at AIM, while larger companies can list on the London Stock Exchange's Main Market. Private equity is the main private alternative for mature businesses that want growth capital or a partial sale without going public.
6 routes to look at, cheapest first
Compare the first 4 side by side- L3
Specialist secured debt
Borrowing secured on specific assets such as invoices or stock, with more fees and conditions than mainstream debt. - Equity rungs. These routes cost no interest, but you give up part of the ownership and control of your business. They are ranked by how much you give up, not by a made-up interest rate. Over time, equity can be the most expensive money of all.E2
Significant dilution and investor rights
Investors take a meaningful stake and usually get rights such as a board seat, a veto over big decisions, or a preferred return. - E3
Major dilution, loss of control or public obligations
Investors take control, or the company becomes publicly traded and takes on ongoing public rules, costs and scrutiny.- Private equity investment
Private equity (including buy-outs)
A private equity firm takes a large or controlling stake in a mature business to help it grow, often through a management buy-out or buy-in, and sells the stake a few years later.
6 months or moreGives up shares - Public and quasi-public markets
AIM (London Stock Exchange growth market)
The London Stock Exchange's market for smaller and growing companies. You sell shares to public investors and your shares can then be traded, in return for ongoing rules, costs and scrutiny.
MonthsGives up shares - Public and quasi-public markets
Aquis Stock Exchange (AQSE) Growth Market
A UK stock exchange for growth companies, with an Access segment for early-stage companies and an Apex segment for larger ones. A route to raise money from public investors with lighter entry than larger markets, but with ongoing public company duties.
MonthsGives up shares - Public and quasi-public markets
London Stock Exchange Main Market listing
Listing your shares on the London Stock Exchange's Main Market, under the FCA's UK Listing Rules, to raise money from public investors. It suits larger companies.
6 months or moreGives up shares
- Private equity investment
Worth knowing
- Talk to a nominated adviser (for AIM) or a sponsor (for the Main Market) early. They assess whether your company is ready.
- Several years of audited accounts and public-company governance take time to put in place.