Biggest year for IPOs on AIM since 2007

Publications that covered this story include City Am, 7 April, Daily Mail, 7 April, The Independent, 7 April and The Times, 7 April.

  • Raises £2.2billion, up 282% on last year 
  • March biggest month for AIM IPOs since July ’07

The Alternative Investment Market (AIM) has delivered the biggest year for IPOs since 2007/8, with the 76 companies that floated in the last 12 months* raising £2.2billion, according to our research.

This is almost three times the £778 million raised in IPOs in 2012/13.

March 2014 alone saw £671 million raised through ten AIM IPOs, the biggest single month for money raised since July of 2007, two months before the run on Northern Rock.

Our research shows that the float of online clothing retailer Boohoo.com led the way as the largest AIM IPO of 2014 so far, raising £300 million in mid-March.

We explain that IPO activity on AIM has returned to pre-recession levels since the start of 2014.

Laurence Sacker, Partner, comments: “The AIM IPO market has taken off in a big way so far in 2014.”

“There hasn’t been a two billion pound year for AIM IPOs since the credit crunch, so this is a significant milestone in the junior market’s return to growth.”

We explain that Boohoo.com’s AIM IPO followed successful market debuts by freight delivery group DX and Irish hotelier Dalata, both of which raised more than £200 million.

Says Laurence: “The string of successful IPOs so far in 2014 should persuade more businesses that listing on AIM is once again a very viable way to raise funds for growth. There are already five AIM IPOs scheduled for the first two weeks of April, and many more companies are pushing forward with their own plans.”

Departures from AIM remain low

Our research  that only 80 companies left AIM in the past year, compared to 79 in 2012/13, and a high of 290 at the peak of the recession in 2008/9.

We explain that the most common reason for departures from AIM in the past 12 months was M&A activity, with 34 of these delistings occurring due to takeovers.

Only 22 companies left AIM due to financial stress and insolvency in the past year, compared with a high of 93 in 2009/10.

Comments Laurence: “Delistings from the market continue to run at a very low level, and of those that do leave, a majority are doing so for positive reasons, such as being taken over, or graduating to the main market.”

“The AIM companies that survived the difficult years of 2008 to 2011 are generally in good financial health. Those lean times weeded out a lot of the weaker companies, and a significant number of those that remain will be seen as viable M&A targets.”

Number and value of AIM IPOs, last six years*

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Top Five AIM IPOs by money raised, January-March 2014

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* Year end: 31 March