New equity flotation for the City...

In Topic 6 of the new edition of "Reading and Understanding the Financial Times" I have set out the key features of equity capital. In the articles included in this section the focus is on a new initial public offer (IPO) for Hargreaves Lansdown. Yesterday the City of London was boosted by the news that the Indian company Essar Energy selected London as the base for one of the largest equity flotations in recent times. This oil and power company is expected to raise over £1.5bn by issuing some 20-25% of new equity shares. The money will help to finance the construction of additional power plants in India. There was much international competition to win this important equity issue for London. The decision to launch the issue in the City owed much to the UK's understanding of emerging markets and the Indian economy in particular. This is a vital source of revenue for UK financial institutions at a time when various UK-based flotations have been cancelled.