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Question: “To float or not to float? - that’s the question”

17 Mar 2024,10:13 AM

 

“To float or not to float? - that’s the question”.

Indeed, there are three interesting variations of company behaviour in the UK, in the context of the above question.

  1. Some companies are keen to float on the London Stock exchange. A good example is EasyJet. Founded in 1995, the company was very ambitious, with a vision of becoming the largest low-cost airline, with flights between European cities. EasyJet shares were formally admitted to the Official List of the London Stock Exchange on 22 November 2000 under the ticker EZJ. Today, the low-cost carrier EasyJet has established itself among the most significant airlines based in the UK by passenger numbers. The company is still trading on the London Stock Exchange, with a rising share price as at 25.01.24 19:08:14 GMT.
  2. Some companies have de-listed from the London Stock Exchange. For example, Kingspan Group Plc announced that the listing of the Company's Ordinary Shares on the Official List of the Financial Conduct Authority and admission to trading on the Main Market for listed securities of the London Stock Exchange plc were cancelled with effect from 8.00 a.m. (Dublin time), 18 August 2023.
  3. Some companies are content to raise equity finance privately, without being quoted on the London Stock Exchange. For example, a professor at Cambridge University became a millionaire by commercialising a speech recognition software in the early 1990s. The company did well and was eventually bought by Microsoft, without a stock market quotation at all.

In this coursework assignment, you are asked to undertake a comprehensive search of publicly available information (e.g. online search from websites, the London Stock Exchange, Financial Times, The Economist, etc..) in order to identify, and present a report on at least 2 UK companies which best illustrate each of the above 3 categories, regarding the decision to float or not to float shares on the London Stock Exchange. The examples should refer to the period 2000-2024.

Your report should not exceed 2000 words (excl. references and appendix).

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