Grant Thornton Corporate Finance is predicting a slower year of activity on the Alternative Investment Market, following another record-breaking year last year.
According to London Stock Exchange figures published up to and through February this year, Aim raised some £9bn in new and additional funding last year, when some 519 UK and international companies were admitted.
Through February this year the market had raised some £1.2bn in new and additional funding, with the total number of companies listed on Aim standing at 1,426, representing a total market capitalisation value above £65bn.
Grant Thornton states the total raised through the entire first quarter of this year is more than £1.7bn, up more than 270% on the same period last year.
However, the financing specialist also predicts the FSA’s consultation paper just published on listing rules and the EU’s Transparency Directive are likely to “level the playing field” between Aim and the main market.
One of the reasons for Aim’s growth has been the less restrictive rules governing how companies get listed in the first place, GT says.
CP 06/4 will result in a relaxation of rules governing the Official List, which means the main market is likely to be more attractive to in particular investment companies, GT says.
That said, Aim will still offer elements of flexibility the main market cannot, so will still continue to attract new listing, argues Grant Thornton.
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