Just returned from a seminar at Bloomsbury House, hosted by Business XL, Vitesse Media.
To become a publicly quoted company, the formalities for the PLUS Stock Exchange are a little bit lighter than AIM. But the costs can be quite heavy. To prepare a company for market floation can take upto 4 months, and cost between £100,000 and £120,000 in due diligence, lawyers fees, documentation preparation to make sure everything is au fai and will not be rejected by the PLUS authorities.
Once a company is enlisted, they can then raise money from the public. The shares are traded by a couple of stockbrokers, and the price available to investors online. Charges per annum can be between £30,000-£50,000.
Last year, £40 million was raised on the PLUS stock exchange. Successful companies are in the Media sector (publishing) and Financial.
For ambitious entrepreneurs who have the necessary upfront fees, this is quite a practical way to raise capital for expansion.
I in the meantime will have to keep on trying banks and Angel Investors for the $500,000 that I seek to start trading my Currencies and Commodities Fund. Any offers?