AIM delisting trend continues apace

Some 239 companies have left AIM in the first ten months of this year, up from 196 in the same period of 2008.

Delistings from the junior market rose to 24 in October, marking a sharp reversal from the 18-month low of 15 recorded in September, according to information source Deal Monitor. Prominent among those delisting last month were football club owner Southampton Leisure and Moto Goldmines.

The most common reasons cited for leaving the market are poor liquidity, low share prices, burdensome regulatory requirements and the cost of remaining listed outweighing the benefits. Only three companies delisted as a result of going into administration or liquidation during October, while eight departed because they were acquired or completed a reverse takeover.

Oliver Staple, an associate at law firm Faegre and Benson, comments on GrowthBusiness that the reduction in the number of AIM companies is beneficial for the market.

Staple explains, ‘It’s a good sign, to the extent that those remaining are of a higher calibre than those that fell by the wayside.’

Three companies, all investment vehicles, joined AIM in October. They secured a total of £191.5 million, the highest amount of new money raised on the market in a monthly period since May.

Nick Britton

Nick Britton

Nick was the Managing Editor for when it was owned by Vitesse Media, before moving on to become Head of Investment Group and Editor at What Investment and thence to Head of Intermediary...

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