Floatation meaning

Floatation (also spelled flotation) describes the process by which a company’s shares are admitted to trading on a stock exchange and, commonly via an initial public offering (IPO), offered to public investors. The term is descriptive rather than a defined statutory concept; the legal framework derives from admission, listing and prospectus regimes. In the UK, floatations typically involve admission to the FCA’s Official List and to trading on the London Stock Exchange Main Market, or to AIM (a UK growth market) or the AQSE Growth Market. In Ireland, companies float on Euronext Dublin’s Main Securities Market or Euronext Growth. Cross‑border or dual listings (including on NASDAQ or the NYSE) are also used. Key legal features include: preparation and approval of a prospectus (UK Prospectus Regulation for the UK; EU Prospectus Regulation in Ireland) or an admission document for growth markets; eligibility and disclosure assessments (UK Listing Rules, AIM Rules, Euronext Dublin rules); appointment of a sponsor or nominated adviser; underwriting or bookbuilding (for an IPO); satisfaction of free float and corporate governance requirements; and ongoing continuing obligations. A floatation provides liquidity, price discovery and access to capital, and is a common exit route for founders and private equity/venture capital. Usage is broadly...