Established in 1698, the London Stock Exchange's (the 'Exchange') Main Market has long been home to some of the UK's, and indeed the world's, largest and best-known companies. There are over 1,400 companies on the Main Market with a combined market capitalisation of £3.7 trillion.

Companies of all types, nationalities and sizes together represent some 40 sectors.

As well as sectoral and geographical diversity, the Main Market accommodates the admission to trading of companies with a Premium Listing or a Standard Listing. The FSA's listing categories are described in detail in the chapter 'The role of the UK Listing Authority'.

A listing on the Main Market demonstrates a commitment to high standards and provides companies with the means to access capital from the widest set of investors. Over the last 10 years, £366 billion has been raised through new and further issues by Main Market companies – capital that has seen companies through the good times and the bad.

Joining a public market – the Main Market or AIM (our market for smaller, growing companies) – is a way to grow and enhance your business. When considering the available financing options, the following factors are frequently cited as the key benefits of admission to a public market:

• providing access to capital for growth, enabling companies to raise finance for further development, both at the time of admission and through further capital raisings
• creating a market for the company's shares, broadening the shareholder base
• placing an objective market value on the company's business
• encouraging employees' commitment and incentivising their long-term motivation and performance, by making share schemes more attractive
• increasing the company's ability to make acquisitions, using quoted shares as currency
• creating a heightened public profile – stemming from increased press coverage and analysts' reports – helping to maintain liquidity in the company's shares
• enhancing the company's status with customers and suppliers.

Companies that choose to seek admission to a public market in London have a range of options depending on their size, stage of development and capital-raising requirements. The options open to companies should be discussed in detail with their team of advisers.

Companies which are successful on AIM and reach a certain size and stage of development, may seek to transfer their securities from AIM to the Main Market, provided that they meet the eligibility criteria. While a move to the Main Market may subject the company to increased regulatory requirements, it can bring benefits in terms of a heightened profile and attracting different investors.

Joining the Main Market

Responsibility for the approval of prospectuses and admission of companies to the Official List lies with the UK Listing Authority (UKLA). The Exchange is responsible for the admission to trading of companies to the Main Market. Joining the Main Market consequently involves two applications: one to the UKLA and one to the Exchange.

The success of the Main Market is built on a wide range of factors:

• a respected and balanced regulatory environment
• choice
• access to capital from a broad and knowledgeable investor base
• expert advisory community
• enhanced profile and status

The Main Market has attracted companies of all sizes and from all sectors over many years. Irrespective of their sector, origin or strategic direction, they have all sought to take advantage of the range of benefits a listing on the Main Market affords. Those benefits include:

A respected and balanced regulatory environment

The UKLA's listing framework underpins London's reputation for balanced and globally-respected standards of regulation and corporate governance. Regulatory requirements in London are principles based and provide an appropriate balance of investor protection, practitioner certainty and flexibility. The Exchange aims to be involved in all relevant processes where amendments or additions to the regulatory framework are considered. This is to ensure that London's competitive advantage remains undiminished; that listings and subsequent capital raisings are costeffective and efficient for our companies; and that investors have the appropriate amount of information to make informed investment decisions.

Choice

Companies with either a Premium or a Standard Listing can choose to admit to trading on the Main Market.

A Premium Listing means that a company must meet standards that are over and above (often described as 'super-equivalent') those set forth in the EU legislation, including the UK's corporate governance code. Investors trust the superequivalent standards as they provide them with additional protections. By virtue of these higher standards, companies may have access to a broader range of investors and may enjoy a lower cost of capital owing to heightened shareholder confidence. A Premium Listing is only available to equity shares issued by commercial trading companies.

With a Standard Listing, a company has to meet the requirements laid down by EU legislation. This means that their overall compliance burden will be lighter, both in terms of preparing for listing and on an ongoing basis. Standard Listings cover the issuance of shares and Depositary Receipts ('DRs') as well as a range of other securities, including fixed-income. Large companies from emerging markets may wish to list their DRs, thus attracting investment from the significant international pool of capital available in London. (A table showing the key differences between a Premium Listing and a Standard Listing can be found in 'The role of the UK Listing Authority'.

Access to capital

We provide access to the largest pool of international equity assets in the world. This culture is embedded in London's investment management community, which understands companies from home and abroad and wants to invest in the global economy. Once they are listed and admitted to trading on the Main Market, companies should not underestimate the value of being able to return to the market to raise funds through further issues. Even during the recent difficult market conditions, the Exchange successfully facilitated significant levels of capital raising. Further issues by Main Market companies provided capital injections that were used to pay off debt, rebuild balance sheets and fund further growth.

Expert advisory community

The decision to join the Main Market is a pivotal one. To achieve a successful listing and admission to trading, companies must deliberate over many considerations.

Underpinning the Main Market is a network of experienced advisers who will guide you on the journey to an initial public offering ('IPO') and provide ongoing advice once your company is listed.

Selecting the right advisers for you and your company is vital. Getting it right early on will help ensure that disruptions to the process are minimised and you are able to get on with the task at hand. Factors to consider when appointing advisers include the firm's relevant and recent experience in relation to your business and the sector you operate in, as well as the personal rapport you develop with the individuals with whom you will be working.

The diagram below shows the different advisers typically involved in a flotation on the Main Market and briefly highlights their varying roles and responsibilities.

Profile

Floating a company on the Main Market raises your company's profile and helps you to meet your strategic objectives. You will have the opportunity to project your company onto a global stage with increased media coverage, investor interest and broad analyst coverage. With a Premium Listing comes the potential for inclusion in the FTSE UK series of indices which includes the FTSE 100, FTSE 250 and FTSE Small Cap indices. Access to these indices is often seen as one of the key benefits of achieving a Premium Listing since so many investment mandates – particularly in respect of the vast amount of capital represented by tracker funds – are driven by FTSE indexation.

Our commitment to the primary markets

There is a continuous stream of proposed regulatory changes affecting companies on our markets, with legislation stemming from changes here in the UK and in Brussels. With companies' best interests front of mind, we continue to lobby on their behalf to ensure our markets are fit for purpose. It is crucial that through our lobbying we continue to promote a regulatory regime based on principles, seeking to limit disproportionate legislation applicable to issuers that are admitted to trading on our markets, while ensuring sufficient investor protection.

Once you are listed on the market, we are committed to helping you raise your profile and keeping you abreast of market developments. We help to do this through the provision of brand marks; a dedicated page on our website specific to your company (including latest news and pricing information on the trading of your securities); educational initiatives, such as seminars and practical guides; and investor-focused events such as capital markets days that bring companies and investors together.

Main Market brand marks
These brand marks are provided exclusively to companies listed on the Main Market. Companies may use the brand mark across corporate and investor relations materials to showcase their association with the London Stock Exchange and provide information as to their listing status. More information is available on the Exchange's website: www.londonstockexchange.com/brandmarks

Listing and admission to trading on the Main Market is an efficient way for companies to access capital to fund their growth, while simultaneously benefiting from enhanced profile and liquidity within a well-governed and regulated market structure. As an ambitious company with plans to take your business to the next level, joining the Main Market is an ideal way to assist you in realising your global aspirations.