INVESTMENT FLOWS CHANNELLED THROUGH AN EXCHANGE New Companies (IPOs) New Companies (Non-IPO) Already listed companies Exclusions
Newly
issued shares
Already
issued shares
Newly
issued shares
Already
issued shares
Newly
issued shares
Already
issued shares
1 IPOs              
An initial public offering (IPO) a type of public offering where shares of stock in a company are sold to the general public, on a securities exchange, for the first time. Through this process, a private company transforms into a public company.
Rules:
1 Company must be listing for the first time
2 Prospectus must be approved by a regulatory authority
3 Shares must be offered to the public

Issue price is used to value the IPO, for both new and existing shares

It is possible that an IPO may list a combination of new shares and already issued shares.
1 a) Sale to the public of already issued shares by a previously non listed co.   ü          
1 b) Sale to the public of newly issued shares by a previously non listed co. (capital increase through an IPO) ü            
2 Introductions              
An introduction is where a new company enters the market in a manner which is not an IPO. This may include (but is not limited to) entrants resulting from Spin-offs,  Mergers, Private Placements, Transfers of listing venue between exchanges. 2 a) Introduction of a company when listing on a market. New shares are issued for sale as part of the listing process     ü        
2 b) Introduction of a company when listing on a market. No shares are issued for sale as part of the listing process             û
2 c) Introduction of a company when listing on a market. Already issued shares are offered for sale as part of the listing process       ü      
3 Follow-on Transactions \ Secondary Offers              
A Follow-on Transaction \ Secondary offer is a further issuance of shares by a company already listed on an exchange. 3 a) Sale to the public of already issued shares by an already listed co. (free float changing)           ü  
3 b) Sale to the public of newly issued shares by   an already listed co. (capital increase)         ü    
3 c) Repurchase of listed shares (delisting's)             û
3 d) Private sale of already issued shares by an already listed co. (free float changing)           ü  
3 e) Private sale of newly issued shares by   an already listed co. (capital increase)         ü    
3 f) Exercise of stock options leading to the creation of new shares         ü    
4 Rights Issue              
A rights issue is an offer to existing holders of securities to subscribe or purchase further securities in proportion to their holdings. The rights issue leads to new money for the company.  4 a) Exercise of Rights Issue of X shares per Y at W price         ü    
4 b) Bonus issue X new share for every Y shares held                     û
5 Mergers \ Takeovers              
A merger is a legal consolidation of two companies into one entity. A takeover (also known as an acquisition) occurs when one company takes over another and completely establishes itself as the new owner (in which case the target company still exists as an independent legal entity controlled by the acquirer).

Note:
5a is a subset of IPO totals and needs to conform to IPO inclusion rules

5b is a subset of Introduction totals

5d is a subset of Follow-on Transactions \ Secondary Offers
5 a) New Entity is created
A and B were already listed on that market
or
A was already listed and B not listed
The new entity is listed and ALL the following criteria are met:
A. New shares or already issued shares are offered to the public. Already listed shares may be included also
B. New registration documents(approved Prospectus) are published
C. New company is offered to the public "
ü ü          
5 b) New Entity is created
A and B were already listed on that market
or
A was already listed and B not listed
The new entity is listed and NOT ALL the following criteria are met:
A. New shares or already issued shares are offered to the public. Already listed shares may be included also
B. New registration documents(approved Prospectus) are published
C. New company is offered to the public "
    See Introductions See Introductions      
5 c) New Entity is created
A and B were already listed on that market
or
A was already listed and B not listed
The New Entity is not listed
            û
5 d) No New Entity is created
A and B were already listed on that market
or
A was already listed and B not listed
        ü
(if A issues new shares to pay for the acquisition)
ü
(B shares value)
 
6 Spin-off of company B by a listed company A              
A spin-off is when a division of a company or organisation becomes an independent business. The spin-off company takes assets, intellectual property, technology, or existing products from the parent organization. Shareholders of the parent company receive equivalent shares in the new company in order to compensate for the loss of equity in the original stocks.

Note:
6a is a subset of IPO totals and needs to conform to IPO inclusion rules

6b is a subset of Introduction totals
6 a) New company B is listed on that market and both of  the following criteria are met:
A. New shares or already issued shares are offered to the public. Already listed shares may be included also
B. New registration documents(approved Prospectus) are published
C. New company is offered to the public "
ü ü          
6 b) New company B is listed on that market and both of the following criteria are NOT met:
A. New shares or already issued shares are offered to the public. Already listed shares may be included also
B. New registration documents(approved Prospectus) are published
C. New company is offered to the public 
    See Introductions See Introductions      
6c) New company B is not listed             û
7 Conversion of Debt to Equity              
Debt conversion to equity is a transaction in which a lender agrees to convert a loan into shares of equity. There is no cash exchange in a debt-equity swap transaction. 7 a) New shares are issued for consideration of the debt as part of the conversion process         ü    
7 b) Already issued shares are offered for consideration of the debt as part of the conversion process             û
8 Split              
A stock split increases the number of shares in a public company. The price is adjusted such that the before and after market capitalization of the company remains the same and dilution does not occur. 8 a) Stock split of x new for y old             û
8 b) Reverse split x new for y old             û
9 Scrip Dividend              
A scrip dividend is the process of giving to existing shareholders an option of receiving either shares or cash as a method of paying a dividend. 9 a) New shares are issued for the purpose of paying dividends to shareholders         ü    
9 b) Existing shares are used for the purpose of paying dividends to shareholders             û