Glossary
An FCA-approved adviser a company must appoint when it lists, and for certain later transactions, confirming to the regulator that the company understands and meets its obligations.
Key Parties
from Capital Markets
A capital markets transaction involves a web of professional advisers. The issuer is the company or government raising funds. Underwriters (or bookrunners) are the investment banks managing the offering and assuming distribution risk. A sponsor (required at listing and for certain later transactions) vouches for the issuer's compliance with listing rules. Lawyers advise on both sides — issuer's counsel and underwriters' counsel — each with distinct responsibilities around disclosure, due diligence, and regulatory filings. Auditors verify financial information, and registrars manage the share register.
IPO (Initial Public Offering)
The first sale of a company's shares to the public, marking its transition from a private to a publicly listed entity.
Prospectus
A legal document disclosing all material information about the issuer and the offering, required for public offers of securities.
Underwriting
The commitment by an investment bank to purchase all or part of a securities offering, guaranteeing the issuer raises its target funds.
Bookbuilding
The process of gauging investor demand at different price levels to determine the final offer price of an IPO or bond.
Coupon
The periodic interest payment made to a bondholder, expressed as an annual percentage of the bond's face value.
Covenant
A binding promise in a bond's terms restricting the issuer's conduct (e.g., caps on additional debt) to protect investors.
Free Float
The proportion of a listed company's shares that are available for public trading, excluding shares held by insiders or strategic investors.
Yield
The annual return an investor earns on a bond, accounting for its coupon payments and the price paid for it.