Temporary shelter becomes a permanent home: twenty years of Aim growth
17 June 2015
As at 31 May 2015, the market cap of Aim stood at £75,286 million, a rise of 24.4% in the last ten years, making it the largest alternative investment market in the world. Aim was created as an introduction to life in the listed environment, with 27 companies upgrading from Aim to the Main Market during the last five years.
However, in the same five year period, 31 companies have made the move in the opposite direction, exchanging a main market listing for Aim. Looking further back, 115 companies have moved from the Main Market to Aim over 20 years.
Richard Thornhill, equity capital markets partner at Deloitte commented: “Aim can be a destination market in itself, not just a temporary home as an incubator. Aim successes result from companies taking advantage of the market’s flexibility in terms of acquisitions, lower regulatory costs and lower tax in transactions, as well as now being able to place Aim shares into ISAs.”
In addition, we see companies like ASOS, GW Pharmaceuticals and Abcam, with market cap of £3.1 billion, £1.6 billion and £1.1 billion as at 31 May 2015 respectively, remaining on Aim when they could be easily slotted into FTSE 250 if they were listed on the senior exchange. On a combined basis these three companies alone have accounted for 28.9% of the total growth of the market in the last ten years.
Richard Thornhill concluded: “The exchange is of vital importance to the wider UK economy, not least British companies which remain the largest constituent part (66.7% of market capitalisation at 31 May 2015). Aim has a diverse focus and caters to a broad risk appetite. Its significant contribution to the UK capital markets landscape should be celebrated.”
Note: Aim is defined as London Aim Market Listings of shares for trading companies (i.e. investment companies, venture capital trusts, transfers from other markets, cash shells etc. have been excluded.
Notes to editors
In this press release references to Deloitte are references to Deloitte LLP, which is among the country's leading professional services firms.
Deloitte LLP is the United Kingdom member firm of Deloitte Touche Tohmatsu Limited (“DTTL”), a UK private company limited by guarantee, whose member firms are legally separate and independent entities. Please see www.deloitte.co.uk/about for a detailed description of the legal structure of DTTL and its member firms.
The information contained in this press release is correct at the time of going to press.
Member of Deloitte Touche Tohmatsu Limited.