In April 2002, RFC Corporate Finance became the first Australian based
approved Nominated Advisor (or Nomad) for companies listed on the AIM
market of the London Stock Exchange (AIM). RFC
currently acts as Nomad for 17 resource sector companies that are listed
on AIM::
AIM was established in 1995 with eligibility and ongoing requirements
that are more flexible than the LSE’s main board market. There
are no minimum size, trading track record or shareholder spread requirements,
and no requirement for companies to be domiciled in the UK. AIM thereby
provides an avenue for smaller and earlier stage companies to list in
London and gain exposure and access to the deep pool of UK and European
based institutional capital.
An AIM listing is well suited to junior resource companies, with London
having a long history as a leading centre of global mining capital. Four
of the major diversified mining houses, BHP Billiton, Rio Tinto, Anglo
American and Xstrata, are listed in London. Further details on AIM can
be found on the website of the London
Stock Exchange and in the presentation – “Understanding & Comparing
AIM with Alternative Equity Markets”.
Every AIM company must appoint and then retain both a Nomad and a broker
at all times. The Nomad plays a pivotal role during the initial admission
process and advising it thereafter. The Nomad is also the company’s
principal point of contact with the exchange and has a duty to ensure
the company complies with AIM rules. Further details on the role of the
Nomad are contained in the presentation – “The
Nomad – The Regulatory and Corporate Advisor”.
Listing on AIM is a simple process. The fast track “designated
markets” route introduced in June 2003 makes it even simpler for
companies that have been listed on another approved exchange, which includes
the ASX, for at least 18 months. RFC has experience acting as Nomad for
companies admitted to AIM under both the full admission route and the
fast track route.
RFC is unique in being the only Australian based specialist resource
sector investment bank which is also an AIM Nomad. We believe we offer
substantial benefits to resource sector and/or ASX listed companies over
other Nomads in that:
We are better able to understand resource sector businesses than
other Nomads. We complete many due diligence tasks in-house resulting
in significant savings in the total cost of the initial admission process.
We have a strong understanding of both the Australian and UK regulatory
environments for listed companies and know how to deal with conflicts
encountered by dual listed companies to the satisfaction of all regulators.
We are well regarded by investment institutions, which helps with
the development of general market interest in our clients and with
capital raisings. RFC's AIM clients since 2004 have raised in excess
of A$285 million, with RFC taking a substantial role on many of these
issues.
We are independent of, but have a good understanding of the UK brokers
with strength in the resources sector, and have established working
relationships with many of them. We are therefore able to assist companies
to retain an appropriate broker.
We are well connected in the resource industry and therefore well
placed to assist our AIM clients with general corporate and industry
advice they may require (ie identification of value accretive acquisition
opportunities, asset disposals, debt and equity funding and assistance
with execution).
RFC has AIM qualified executives based in Sydney and Perth that are
available to provide advice during normal Australian business hours
and are therefore able to more easily manage the admission process
and ongoing regulatory requirements than UK based firms.
For enquiries and further details about RFC’s Nomad services, please
feel free to contact us.
