AIM raises twice as much capital as all rival European growth stock markets combined

Publications that covered this story include: The Times and City AM
    • Comes despite mounting Brexit fears
    • AIM hosts four of top five IPOs by value on all growth markets last year

Despite Brexit related jitters the UK’s Alternative Investment Market (AIM) has still managed to raise over twice as much new capital for companies as all its largest rival European growth markets combined over the last year, our research shows.

£3.9bn of capital was raised on the Alternative Investment Market last year (year-end Sept 30) in IPOs and secondary fundraisings compared to £1.9bn raised by its four largest rival European growth markets combined. AIM companies accounted for 62% of all capital raised on European growth markets last year.

As well as Brexit raising concerns over the outlook for UK business it has caused uncertainty over how easy it will be for EU entities to trade in AIM listed shares in a “no-deal” scenario.

Laurence Sacker, Managing Partner in our London office, comments: “The advantages of AIM over other European junior stock markets have trumped Brexit worries.”

“These numbers suggest AIM is currently streets ahead of its competitors elsewhere in Europe.”

The access to institutional investors that AIM provides may have outweighed Brexit fears for some companies. The quality of AIM companies has attracted growing institutional interest compared to other European growth markets in recent years which makes it easier for companies to raise funds.

AIM’s balance of regulation has also proved attractive for companies, with this balance ensuring that high standards are maintained without acting as a burden on market constituents.

Our research shows four out the top five IPOs by value on all growth stock markets took place on AIM last year. This included the listings of pharmaceutical group UniPhar (raising £128m) and restaurant and café chain Loungers (£88m).

Laurence adds: “AIM has become the home to a growing number of institutional grade companies.”

“Admittedly those companies’ share prices can still be volatile but liquidity has been improving over the last decade. That improved liquidity and the strength of AIM in secondary fundraisings has helped to draw more companies to the market who can see AIM’s success as a platform for growth.”

No companies left AIM to join rival markets last year

No companies left AIM to join a rival growth market in 2018/19. In 2017/18, five businesses left AIM to join other markets, such as the Johannesburg Stock Exchange and the TSX Venture Exchange in Toronto.

Laurence Sacker, Managing Partner in our London office says: “The quality of AIM’s offering has meant that fewer companies see the need to move to another market. AIM’s reach amongst institutional investors and ability to meet funding needs means the needs of most companies are very well served.”