DM GROUP PLC

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Advising and Broking in the Small Company
Arena
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Dowgate Plus Markets

• One Media Holdings plc - 826k raised
• One Charter plc - 900k raised
• Firenze Holdings plc - 800k raised
• Property Mart Overseas plc - 1.6m raised
• Global Property Support plc - 400k raised
• The Brandsco plc - 1.5m raised
• Venture capital with a quote

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What are investors looking for?

• Solid track record of trading
• Profitable or near to profit
• Strong growth story
• Stock specific opportunities (i.e. renewable
  energy)
• A yield in more established companies
• International focus
• Realistic valuations
• Clear reason for flotation
• and last but not least

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What are investors looking for?

• credible management team
• Track record of success
• Financial discipline
• Good corporate governance
• Interests aligned with shareholders
• Commitment and enthusiasm

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Appointment of Adviser and Broker

• Distribution capability
• Recent deal history
• Sector knowledge
• Chemistry

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Preparation for an IPO

• Time and resource allocation
• Deliverable business/strategy plan
• Realistic expectations and flexible approach
• Board structure / corporate governance
• Share incentives
• Typical timeline is 14 16 weeks

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The IPO Process

• Appoint advisers
• Conduct detailed due diligence
• Legal
• Accounting
• Commercial
• Director background investigations
• Draft admission and supporting documentation
• Marketing process
• Admission
• Ongoing investor relations

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IPO Timetable
Flotation typically takes 14 16 weeks from
engagement to admission.
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Brokers role during admission process

• Provide guidance on valuation
• Advise on pricing of issue
• Advise on ideal free float
• Arrange marketing roadshow with institutional
  investors
• Arrange pathfinder research, if required
• Bookbuild, price and place stock

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Brokers role after admission

• Co-ordinate trades in companies securities
• Ensure orderly market
• Arrange meetings with current and potential
  investors
• Feedback on market perception of the company
• Arrange for research to be published on company
• Co-ordinate further placings to fund growth
• Monitor trading activity and analyse shareholder
  register

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Investor relations post admission

• Maintain contact with market and investors
• Keep market informed of events
• Key audience
• Institutional investors
• Retail investors
• Buy and sell side analyst
• Financial media
• Investor relations section on website

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Issues post admission to trading

• Liquidity
• Newsflow
• Improving profitability
• PR
• Acquisitions
• AIM/Main Market

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Contact Details

• David Newton
• Director
• Dowgate Capital Advisers
• 46 Worship Street
• London
• EC2A 2EA
• Tel [phone]
• Email david.newton_at_dowgate.co.uk