AIM grows for the first time in six years as IPOs return to junior market

Publications that covered this story include Daily Express, Independent, City AM and Reuters, 7 October.
  • £881m raised in AIM IPOs in last year – 70% increase on previous year

The Alternative Investment Market (AIM) has grown for the first time in six years as IPOs return to the junior market.

In the three months to 30 September 2013, the number of companies floating on AIM was higher than the number leaving the market for the first time since the third quarter of 2007.

In the third quarter of 2013, 20 companies joined AIM while only 16 delisted from the market.

56 companies joined AIM in the last 12 months*, raising £881 million through IPOs – a 70% increase on the £520 million raised over the previous 12 months.

Laurence Sacker, partner, comments: “There is a definite sense of optimism around AIM at present. Returning to growth for the first time since the credit crunch is a very significant moment for the market.”

“AIM has struggled through some very lean years since 2007, with a lot of businesses shelving their IPO plans. These figures show that more companies are again looking at an AIM IPO as an opportunity for growth.”

“The number and value of IPOs have both grown quarter-on-quarter throughout 2013, and the deal pipeline is looking healthy. 2014 could turn out to be a real bounceback year for AIM, although getting back to the level of new listings we saw during the boom years remains a pretty remote prospect.”

The equivalent 12 month period in 2006/7 saw £8.8 billion raised though AIM IPOs, more than ten times the figure for the past 12 months.

The biggest new listings over the third quarter of 2013 included the £50 million float of online options trading group Plus500, and the £47 million listing of eastern Europe commercial property fund Globalworth Real Estate.

Between July and September 2013, AIM also welcomed Conviviality Retail, the owner of the Bargain Booze and Wine Rack off-licence brands, in a £33 million IPO, and computer game designer Frontier Developments, developer of the Zoo Tycoon series, which raised £4 million.

Delistings and IPOs on AIM, last eight quarters

*year end 30 September 2013