Quindell's Main Listing Analysis

Thursday, Jun 05 2014 by

Quindell (LON:QPP) Main Listing Analysis Courtesy of @Securitorium on Twitter

Before Quindell (LON:QPP) can be listed, their sponsor  Canaccord Genuity Inc (LON:CF.)  must get QPP’s prospectus approved by the UKLA. Although the prospectus is a legal document, it is also a marketing tool to help to sell shares to potential investors. Hence it needs to be perfect for the upcoming Teach-In on the 17th Jun, stand up to scrutiny at the AGM, and satisfy all current investors.

The drafting of a prospectus takes several weeks and will involve all of QPP's advisers. A number of drafting sessions will have taken place already on various sections of the document. Although RT confirmed submission on 22nd April (or around that date) this was likely one of the first drafts - if not the first!

From a marketing perspective, the prospectus outlines QPP's strengths, strategy and market opportunity - plus the risks of course.

QPP's sponsor is responsible for submitting drafts of the prospectus to the UKLA. The UKLA is allowed 10 business days after the first submission to respond to the sponsor with a comment sheet. QPP and its advisers will then revise the prospectus so that the sponsor can submit an updated draft with the UKLA for a further review. For the second and subsequent drafts, the UKLA responds via its comment sheet within five business days.

As every transaction is unique, it is impossible to predict exactly how long this entire process will take. As I said in my tweet - due to QPP's recent acquisitions it is likely the process will take longer due to the due diligence that is required.

However, as a general rule, the timeframe is approximately six to eight weeks from initial submission of the prospectus to the UKLA (approximately three to four submissions) to preliminary approval ahead of launching the transaction. Keep in mind it may take QPP a little longer to make the required changes

I see no need to be concerned, and by all accounts we appear to be on track for Main Market listing. Keep in mind it makes not difference that we are on AIM. It is treated as standard Main…

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15 Posts on this Thread show/hide all

Commanderbox 6th Jun '14 1 of 15

Good summary of the process. I think, however, that the listing rules do not prevent a sponsor's research analyst from rating a stock that is moving to the main market. Canaccord's corporate finance and corporate broking teams are probably sponsoring the listing / managing the application / conducting due diligence. They are separated by a Chinese wall from Canaccord’s equity research team, which is presumably free to cover the stock.

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steamy001 6th Jun '14 2 of 15


Thank you for bringing clarity, its a lot better than TW producing a video to say this article is lying, appreciate the feedback.

PS the article was written by @Securitorium who can be followed on Twitter

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rhomboid1 9th Jun '14 4 of 15

Hi steamy001

I've read this RNS and can't see why they've issued it? Unless they're slipping against a previously announced timetable?

Do you know?


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DJLJ23 9th Jun '14 5 of 15

they had said they planned to list in june, so i read this as a potential delay to the timetable, the words "as soon as practicable" to me means that we can expect a significant delay. Some boards suggest its QPP trying to tie in an american deal at the same time as main listing, But it could be the UKLA just don't like what they have been given. At least 10 days to find out.

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hayashi22 11th Jun '14 6 of 15

what a complete and utter fool steamy001 is. you have to laugh. I'm not a holder.

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DJLJ23 11th Jun '14 7 of 15

In reply to post #83926

you may not agree with him, but your comments don't add value to the discussion

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JMLDutch 11th Jun '14 8 of 15

I could not help but notice the following passage: "we have business worldwide".

I think it is better to keep a bit of distance from investments to stay objective. Quindell is not "we" for any investor.

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sminers 11th Jun '14 9 of 15

They may list in the US instead according to their RNS. That'll teach the LSE, no wonder London is losing out!!!

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hayashi22 11th Jun '14 10 of 15

Agree DJLJ23 but I couldn't resist. anyway as it happens I just bt some at 13p as a pure punt. did it before I read PS had done the same. Can't justify a conviction buy on fundamentals so will flip it out at some stage-hopefully at a profit.

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Paul Scott 12th Jun '14 11 of 15

utter drivel, from a deluded fool.

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Paul Scott 12th Jun '14 12 of 15

these halfwits tried to silence me too. shame on them! never again.

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DJLJ23 12th Jun '14 13 of 15

In reply to post #83933

i can't fault the logic, i just don't want to see this board, go the way of advfn, bought more on the same premises myself

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DJLJ23 12th Jun '14 14 of 15

Link to proposed changes for the motor insurance industry.

There had been concerns that it would significantly impact qpp, but personnely i not seeing anything that i would expect to have a significant effect. Other views welcome


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JMLDutch 12th Jun '14 15 of 15

In reply to post #83967

If you are interested in buying QPP I suggest you consider waiting until the shorters start buying back. I personally think is it close to impossible to be better informed than them as a PI. Then again, I am sure if you want excitement you will get bang for your buck :).

Closing of shorts is no guarantee for SP recovery of course; BLNX continued dropping after shorters closed their shorts.

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