Firms still glad to have floated on AIM
Companies listed on alternative stock exchange AIM are still glad they made the decision to float, despite the downturn in the market’s fortunes recently, according to mid-tier accountants Baker Tilly.
The annual Taking AIM survey, by Baker Tilly and law firm Faegre & Benson, found that an overwhelming majority of AIM listed companies do not regret listing.
The survey of more than 150 AIM companies and investors examined AIM performance, expectations for 2009, regulation and AIM advisers.
Paul Johnson, corporate finance partner at Baker Tilly’s Birmingham office, said: “2008 saw the lowest level of AIM transactions since 1999, but AIM nevertheless fared better than almost all other growth markets.
“Indeed, 74 per cent of AIM companies would still have listed, even if they had known previously how difficult 2008 would be.”
The survey also revealed that nearly all AIM companies and investors surveyed believe AIM will recover from the current downturn, with 69 per cent of companies and 67 per cent of investors expecting this to take place in 2010.
Mr Johnson said: “It is envisaged that AIM will further reduce in size over the next year or two.”
Four in five investors and 68 per cent of companies said they anticipated consolidation. Nearly half of AIM companies had some expectation of making an acquisition and nearly a third of being acquired in the next 12-18 months. The research also highlighted that some de-listing may be inevitable, to reduce the number of smallest cap companies on the market.
Mr Johnson added: “AIM investors are likely to look close to home for a sense of security in their investments. More than 80 per cent said they consider UK companies to be most attractive investments in the next year or two, over international regions.
“Most investors expect, and welcome, that we may never see a return to the heady days for IPOs of 2004-06, which numbered around 300 in 2006. More than half anticipated 100-150 a year as a more likely level to maintain quality and investor interest.”
Secondary fundraising is expected to remain firm, with 61 per cent of AIM companies considering further funding in the next 12 months. Investors cited a good track record, good business plan, good management, a strong balance sheet and realistic valuation as the most important investment criteria.
