GT predicts flurry of NW AIM listings
THE number of North West companies preparing to list on AIM in the next year is set to surge, according to business advisers Grant Thornton.
The firm argues that with AIM indices outperforming the FTSE small cap and AIM admissions increasing for the first time since the 2008 financial crisis, companies seeking to raise extra capital, profile and increased liquidity, will increasingly turn to the junior market.
David Grundy, North West managing partner at GT said: “We believe that the coming months will see a flurry of IPOs from regional companies.
“Companies with strong management teams which can deliver on forecasts and substantiate to investors the appropriate reasons for floating, will come to the market. There are currently around 50 existing AIM companies based in the North West and we anticipate this will increase significantly.
“We are in early-stage discussions with a number of organisations which are aspiring to float on AIM.”
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Mr Grundy said that while AIM can be attractive to international businesses wanting a foothold in the UK, North West businesses looking to raise equity should not overlook it.
The AIM market has seen 172 companies delist in 2010, with seven companies transferring to the main market. Despite this AIM is showing signs of increased activity with 73 UK admissions in 2010 compared with 36 in 2009.
