AIM (Alternative Investment Market), a sub-market of the London Stock Exchange (LSE), has released their end of year numbers. Accoring to AIM, they have had a pretty good year:
- New AIM companies in 2016 up 39% post-IPO
- 38 IPOs raised record average of £30m
- Market used as permanent source of growth capital – £3.8bn in further fundraising for 263 companies
- Market maturity demonstrated in statistics over the last ten years
AIM was launched in 1995 to help provide access to capital for smaller firms under a more flexible regulatory approach. Companies from across the UK and elsewhere have raised nearly £100bn in new and follow-on funding. AIM points to multiple well-known UK brand names as using the marketplace, including fashion retailer, Joules; chocolatier, Hotel Chocolat and publisher, Time Out Group.
AIM states that compared to 10 years ago, the average new AIM company is significantly larger: £88 million in market cap versus £17 million in 2005, raising more capital: £30 million versus £5 million in 2005.
“As IPO markets worldwide experienced a challenging 2016, AIM again demonstrated why it is recognised as the world’s leading growth market. Now in its 21st year, AIM has come of age as a market as the nature and performance of this year’s IPOs illustrates. AIM is fulfilling its promise: a global market successfully connecting the real economy: ambitious, small and mid-cap growth companies to institutional and retail investors,” stated Marcus Stuttard, Head of AIM and UK Primary Markets.