AIM finished 2016 on a high as the 38 companies that floated on the market ended the year up more than 39 per cent on average. In addition, 263 companies, already quoted on AIM raised more than £3.8 billion in further fundraising, underlining the market’s capacity to act as a vital source of permanent IPO growth capital.
Since its launch in 1995, AIM, now in its 21st year, has allowed companies from across the UK and around the world to raise nearly £100 billion in new and further fundraising. Just this year we have seen companies from across the UK, including businesses from Scotland and Wales, as well as household names such as fashion retailer, Joules; chocolatier, Hotel Chocolat and publisher, Time Out Group.
The success of companies floated in 2016 builds on similarly strong price performance of IPO over the last three years: +16 per cent on average. The last three years have also seen the nature of new AIM companies evolve. Compared to 10 years ago, the average new AIM company is significantly larger: £88 million market cap versus £17 million in 2005, raising more capital: £30 million versus £5 million in 2005.
Marcus Stuttard, head of AIM and UK primary markets, London Stock Exchange says, ‘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 IPO 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.’
Of particular note has been the variety of the highest performing new AIM companies over the last three years. They operate in sectors as diverse as beverages to high end software and IT. Interestingly too, they all joined AIM with relatively large initial market capitalisations, demonstrating the market’s ability to fund high growth mid-caps as well as smaller businesses.