Floating On
AIM in London
Technical Connectivity: Good
Investor Reach: UK only without dual listing, worldwide reach with dual listings
Overall Listing Project Cost €/$: 500,000
Dual Listing: Some, including Nasdaq New York and ASX in Sydney
As one of the world’s leading growth markets, AIM has provided liquidity and capital to more than 3,700 dynamic high-growth companies. Since its launch in 1995, they have raised over £100 billion of investment capital.
Here’s what Sebastian says:
“Listing on AIM is somewhat cumbersome and expensive and connectivity is limited. However, AIM used to be the leading growth market in the world and has a great reputation, plus you can dual list stocks on Nasdaq in New York. So if you are targeting mainly UK investors and look for a premium brand, this may be it.”
As one of the world’s leading growth markets, AIM has provided liquidity and capital to more than 3,700 dynamic high-growth companies. Since its launch in 1995, they have raised over £100 billion of investment capital.
Why Consider AIM?
What is AIM market? AIM or (The Alternative Investments Market) is a sub-market of the London Stock Exchange and is designed for smaller companies and growing companies in the capital market. AIM offers ambitious businesses opportunities to source external funding to sustain growth and expansion without burdensome regulatory requirements. During the past five years, the average amount raised by AIM listed companies has been £21.4 million.
AIM market has attracted a diverse mix of international companies and institutional investors since its founding and today encompasses more than 40 different business sectors, from retail and software to mining and healthcare.
Unlike listing on the London Stock Exchange, AIM candidates don’t have to have a strong trading track record, and there is a lot less red tape than other exchanges. Among the other benefits of trading here are enjoying access to a broad range of investors, using shares as currency for acquisitions and improving your company’s profile.
AIM Criteria List
How to list on AIM? The process of joining the AIM Stock Exchange to become an AIM listed company typically takes between three and six months, and the principal eligibility requirements for listing include:
- A company has to appoint and retain a nominated adviser (NOMAD) and a broker throughout its time on the market. Both must be registered with the exchange.
- Preparing and publishing an admission document (or prospectus if shares are offered to the public) in compliance with AIM rules.
- Preparing financial information for inclusion in the admission document.
- Paying a joining fee to the London Stock Exchange.
- Making sure shares are freely transferable and can be traded online without the need for paperwork.
- Having sufficient funds to pay the cost of the floatation.
- Having sufficient working capital for at least one year from the date of admission to AIM.
- Companies regarded as 'investing companies' must raise a minimum of £6 million in cash at the time of or immediately before admission to the market.
- Presenting a profit forecast, if appropriate.
AIM Important Points of Interest
- There is no minimum market capitalisation.
- AIM's joining rules do not stipulate minimum requirements for the size of a company, its trading record, number of employees, gross revenues, profitability or the number of shares that must be put into public hands.
- AIM companies have a combined market cap of approximately £104 billion.
- There is a strong support network of accountants, brokers, nominated advisers, lawyers, analysts and other professionals.
- Companies can benefit from a large and loyal investor base looking to invest in diverse companies.
- The flexible regulatory environment is designed to support the needs of small businesses.
- Various tax incentives encourage investment in AIM companies.
