
AIM, the junior market of the London Stock Exchange (LSE), has just celebrated its 20th anniversary. Over the course of the past two decades, AIM has admitted in excess of 3,500 companies and raised more than ?90bn.
The majority of companies currently listed on AIM are UK based, but the successful growth market boasts a healthy and increasing array of internationally based constituents. Whilst some critics have argued that the junior market has been more miss than hit, head of AIM Marcus Stuttard disagrees. He argues that AIM provides small to mid-cap companies the best opportunity to access capital for growth without the level of red-tape or document production required for companies on the Main Market. ?The overall structure of disclosures and transparency is broadly the same as the Main Market but we?re less prescriptive,” he said. Based on these principles, AIM has built a reputation over the last 20 years of being one of the world’s leading growth markets. When AIM was first established in 1995 it was perceived as a highly speculative market. In spite of this, the opportunity to access capital for growth lured a large number of companies to list. Numbers on AIM peaked in 2007 amid the dot.com boom with an estimated market value of ?97.69bn and 1,694 companies listed. Following the global financial crisis in 2008, recovery has been slow and combined market value has yet to reach pre 2008 figures. However, there are now nearly 1,100 companies listed on AIM, covering 40 different sectors valued at a combined total of approximately ?75bn. This clearly shows that AIM still has the resources to attract a large number of companies, some of which have been very successful. Famous AIM success stories include Domino’s Pizza, Majestic Wine and online fashion retailer ASOS. A number of recent changes to AIM have made the market more accessible to investors. From August 2013, individuals have been able to use their Individual Savings Accounts (ISAs) to invest in shares and stock in AIM companies. As of April 2014, Stamp Duty and Stamp Duty Reserve Tax is no longer chargeable on transactions in securities admitted to trading on AIM. These (and other) tax incentives and relaxed regulatory policy mean that AIM remains an attractive market for both companies and investors. Read more about AIM’s 20th birthday:- AIM stock exchange: 20 years boiled down into numbers
- Happy birthday! AIM?s ten best companies of its two-decade history
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