While it seems private equity firms have been picking off listed companies on an almost daily basis, new companies are rushing to take their places.
On AIM, there were 35 new issues in the first half of 2021, more than offsetting the 27 companies that cancelled their listings and already ahead of the 32 new entrants AIM saw in the whole of 2020.
The total number of companies on AIM has recovered to 826, although this is a far cry from the high watermark of 2007 when AIM boasted 1,694 companies.
Then the credit crunch happened, the global economy froze for several years and things have never been quite the same for London’s junior market.
In total, £309.08mln has been raised on AIM through new issues in 2021, while existing listed companies have raised £3.55bn so far this year, indicating that AIM is surviving and maybe even thriving.
This week we’ve had CMO Group, an online retailer of building materials, and Saietta, a UK company that has developed an innovative axial flux electric motor, make their debuts on AIM.
We’re barely a third of a way through July and a dozen or so more are lined up on the runway, waiting to float on AIM, including Longboat Energy, set up by the former Faroe Petroleum management team, and Lords Group Trading, a building materials group focused on the south-east of England and the Midlands.
Longboat is expected to raise £35mln through a primary offer of new shares in late July or early August while Lords is on course for a primary offering of £30mln plus a further £22mln through a secondary offer (i.e. sale of existing shares) on 20 July.