DubLi and the London Stock Exchange

DubLi Ecommerce & Online Trading is preparing its public listing on the London Stock Exchange towards the middle of this year, 2008.
A big and extremely exciting step ahead for DubLi.com… now let’s look at what this actually means. Not everybody is familiar with stocks and shares, however, as independent business owners and possibly even as DubLi Share holders, let’s look at the facts for a better understanding of what is happening right now and which high requirements are involved.

The LSE basically consists of two different stock markets:
Accordingly, the listing requirements are extremely strict, namely:
> three years of audited financial statements,
> minimum public float (25 per cent) and …
> sufficient working capital for at least 12 months from the date of listing.

To compare with the Main Market: here over 1,600 companies list with a total capitalization of 37 billion.
While AIM is an interesting market to observe and invest in, the role of specialist nominated advisers - called ‘Nomads’ - plus brokers, lawyers, accountants etc is crucial to its success.
To get an idea of the admission process DubLi would be going through, let’s look at the admission criteria for joining AIM in general:
- No minimum size of company
- No minimum proportion of shares to be in public hands
- No trading record requirement
- No prior shareholder approval for the majority of transactions
- No restrictions on the transferability of the company’s shares*
- No requirement to be incorporated in the United Kingdom
However…. and this is crucial:
The main requirement is that a company coming to AIM must have a "Nomad" - a Nominated Adviser - at all times. Therefore, once a company has decided to seek a quotation on AIM, the first and most important step would be to choose and appoint a Nomad and then engage a number of other market specialists to help you through the application process, eg. a broker (which may be the same firm as your Nomad), law firm and public relations (PR) and investor relations (IR) adviser.
The next step woud then be to complete admission documentation and provide supporting details about your company’s directors, financial position and business activities. This entire operation is done in a controlled way in close consultation with your Nomad at all times.
The Admission Timetable for a company’s flotation on AIM offers an interesting insight into the three major phases following various steps and their exact order, to be taken to complete the process.
Example quoted from www.londonstockexchange.com :
24-36 months before admission
- Develop a robust business plan
- Ensure contracts are in place with customers and suppliers
- Review management information systems and operational and compliance controls
- Consider ownership and tax issues
12-24 months before admission
- Read the Exchange’s flotation pack
- Attend one of our flotation seminars
- Contact us for a one-to-one meeting
- Adopt ‘best practice’ corporate governance standards
- Complete any planned strategic initiatives such as acquisitions
6-12 months before admission
- Review and plan your investor relations (IR) strategy
- Ensure you have independently-audited financial accounts, if applicable, for a three-year period
- Consider commissioning an independent expert’s report on your business
- Make any necessary changes to the executive board
- Appoint non-executive directors
- Ensure your company is incorporated under the relevant laws
- Consider whether to conduct pre-flotation fundraising
- Decide on the method of flotation
- Hold a beauty parade of advisers
The Admission Process
12-24 weeks before admission
- Appoint your advisers
- Instruct all advisers
- Agree the timetable to admission
6-12 weeks before admission
- Review any problem areas that have emerged
- Produce the draft prospectus/admission document
- Produce the first draft of the other required documents
- Conduct the initial review of pricing issues
- Review PR presentations
- Host analyst presentations
1-6 weeks before admission
- Continue drafting meetings
- Carry out and complete due diligence
- Hold PR meetings and roadshow
- Register the prospectus with the UKLA
- Submit 10-day announcement to Exchange of intention to join AIM
1 week before admission
- All documents completed and approved
- Pricing and allocation of the offer
- Register the prospectus
- Sign subscription agreement
- Bulk print final prospectus
The Admission Week
- Pay Exchange fees
- Submit documents
- Admission to AIM granted
- Trading begins.
This gives all those interested in the DubLi Business Development as well as those directly involved as DubLi Business Associates and/or DubLi Share Holders, a pretty clear understanding of the straight-forward yet complex process DubLi may be going through right now.
It is indeed exciting also from the perspective of the learning experience - and let’s keep fingers crossed that all requirements are met within the set timeframe!



Great, just great ! If there was a goldmedal for patience
It’s only after my first
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