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Floating on AIM: What’s the listing process?

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Floating on AIM is a serious option for you to consider, as banks are still reluctant to lend. Floating on AIM is a good way for businesses to raise finance – but only if it’s right for you. 

Earlier this week, we covered what the crucial factors to consider are. Today we look at the AIM listing process.

Firstly, if you want to float on AIM, you need to ensure there is a team of advisors in place. The Nominated Adviser (Nomad) is the key adviser in the AIM admission process, and a company cannot list on AIM without one.

Nomads are responsible for advising the London Stock Exchange (LSE) as to the company’s suitability for floating on AIM, and will advise the company as to its responsibilities under the AIM rules. 

Companies will also need a legal advisor, reporting accountant and financial PR company. The Nomad co-ordinates the whole listing process. Advisers will commence due diligence and the Nomad will start putting the admission document together, usually with the assistance of legal advisers.

Once all relevant documents have been finalised, the Nomad will submit these to the LSE ten business days prior to the expected date of admission. The LSE then announces to the market and a listing date will be set.

On average, AIM listings take between three to six months, dependent on the complexities of the company and whether a fundraising is being undertaken. 

What about the cost? An AIM listing will typically cost upwards of £250k, again depending on the complexities and nature of the company and its operations.

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