New fast-track rules should encourage a flood of secondary listings on the Alternative Investment Ma...
New fast-track rules should encourage a flood of secondary listings on the Alternative Investment Market and provide UK investors with ample new opportunities the London Stock Exchange says after announcing the changes today.
Companies already listed in Australia, Canada, South Africa, the US, and on various European exchanges will be able to apply for a quick listing on AIM through the use of existing company reports and accounts and the usual reliance on a nominated adviser.
For the companies involved it offers the opportunity of tapping into additional capital.
For UK investors it means they should see a range of interesting new investment opportunities come their way, without having to take the risks associated with investing directly in foreign markets – such as currency risk and lower quality regulatory environments.
The LSE says some 50 foreign companies already have listings on AIM, but the new rules should satisfy the demand expressed by many others.
A spokesman for the exchange says it is unable to release exact numbers of companies and nominated advisers that have approached it with a view to fast-tracking, but adds that the first company to be accepted on this basis should be trading on AIM by the end of the year.
Already Europe's most successful market by number of IPOs in the past year, the LSE says the changes will solidify AIM's growth, which has seen it attract more than 700 listings so far.
AIM stocks are considered more risky than those with a main listing on the LSE, but it continues to attract those investors partial to higher risk/reward ratios.
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