Most recently posted FAQ’s
- Do I need to undertake a fundraising when I join AIM?
No, many of the companies that join AIM do not raise funds at the same time. This reflects the fact that companies join AIM for a variety of reasons. Some join in order to get a clearer valuation for their company or to raise their profile with investors, customers, suppliers and the media. Others may already have a strong balance sheet, and want to issue securities at some future point after their admission to AIM.
Your Nomad and broker will advise you on fundraising, and on the most appropriate methods of promoting your company's shares to the investment community. They will also be able to provide assistance in pricing your shares.
The process of joining AIM
- I've heard that joining a public market involves lot of paperwork. Is that true of AIM?
Once a company has been admitted to AIM, the rules do not require it to produce further documentation or to issue shareholder circulars, unless it is undertaking a reverse takeover, undertaking a fundamental disposal or cancelling from the market. This makes AIM an especially efficient market for acquisitive companies. However, you should be aware that, in certain circumstances, AIM companies may have wider legal or other regulatory obligations that involve producing documentation. While an AIM company is required to announce new developments which may affect its share price without delay, the AIM rules do not require formal quarterly reporting − though companies are free to issue quarterly reports if they wish to do so.
- We like to do things our way. Will being an AIM company mean doing things differently?
Being an AIM company does not alter management's right to manage the business in the way it sees fit. However, as an AIM company you will certainly be subject to a higher degree of scrutiny by the market and the media than you were as a privately-owned company. In general, the board must be prepared to act for a public company and appropriate changes are made to ensure compliance with the AIM rules. The board should turn to the company's Nomad for guidance.
- Can you recommend a Nomad or Broker?
For reasons of independence, we are unable to recommend individual Nomad / Broker firms - however, to begin your selection, you can search for Nomads and brokers who have brought companies from your sector to the market, or look for those with a local presence.
- What should I ask my prospective advisers?
It is crucial that you find advisers who understand your company and with whom you can have a good working relationship. Possible questions to ask them might include:
- What recent deals have you worked on?
- What experience do you have in our sector or country?
- Which market is most appropriate for our company?
- How will you manage our working relationship with you?
- Can we speak to some of your existing clients?
- How much will it cost us to float?
- What range of valuations should we expect?
Joining AIM for international companies
- We're not based in the UK. Is that a problem if we want to be on AIM?
Being based out side the United Kingdom is no problem at all. AIM presents a particularly flexible and highly accessible environment for overseas companies. You do not need to be incorporated in the UK, and you can trade your shares in any freely-available currency.
- We are already traded on another major market. Do we need to produce an admission document for AIM?
Companies whose shares have already been traded on certain reputable markets around the − known as ‘AIM Designated Markets‘ − for at least 18 months, may be eligible to use a simplified admission route to join AIM. Companies taking this ‘fast track’ route do not need to produce an AIM Admission Document. However, this option will need to be discussed with the Nomad.
- Can a company have its securities traded in currencies other than Sterling e.g. Euros, Dollars on AIM?
Yes, your shares can be denominated and traded on AIM in any freely-available currency you choose.
Making the most of your AIM admission
- Can AIM companies use the Exchange's broadcasting facilities to communicate with their shareholders?
Yes. The Media Centre at the London Stock Exchange’s head office in the City of London offers companies the ultimate corporate event venue, complete with the latest state-of-the-art media and presentation technology. Available to hire for company results presentations and product launches, the Media Centre provides a convenient location for an AIM company’s directors to give TV and radio interviews associated with their corporate event or announcement.
- Does the Exchange run any AIM courses or events?
We organise many events to help AIM companies keep up to date with best practice in the market and provide them with an opportunity to meet other company directors. The key AIM event each year is the AIM conference which is held in June. We also run regular flotation seminars for companies considering joining our markets, as well as skills focussed training courses for directors of companies already on our markets, such as IR and Corporate Governance.
- What is AIM's regulatory status?
AIM is owned and operated by the London Stock Exchange in its capacity as a Recognised Investment Exchange under Part XVIII of the UK's Financial Services & Markets Act 2000 (FSMA 2000). AIM therefore falls within the definition of a Prescribed Market under FSMA 2000 and is subject to the UK market abuse regime. Under the directives that form the EU's Financial Services Action Plan, AIM is not a Regulated Market but instead falls within the classification of a Multilateral Trading Facility (MTF) as defined under the Markets in Financial Instruments Directive 2004 (MiFID).
Investing in AIM
- How can I get access to price sensitive and regulatory information for AIM companies?
RNS is the company news service from the London Stock Exchange, bringing company information to the global investment community quickly, securely and cost-effectively. Click here to find out how to subscribe to RNS.
Large investors in AIM
- Which funds and institutions invest in AIM shares?
All the major institutions invest in AIM securities, and there are many specialist and tracker funds that focus on AIM. In addition, retail investors play a significant role in terms of secondary market trading, which is an important driver of liquidity in individual securities traded on the market.
General questions about AIM
- Can I arrange to visit the Exchange to see AIM?
Unfortunately the Exchange is no longer open to visitors. The major attraction for visitors was traditionally our trading market floor, but this was closed in 1986 when 'Big Bang' replaced open-outcry trading with a system of computers and telephones. In addition, the security aspects of operating a visitors' gallery had become too onerous.
- What are the benefits of joining AIM?
AIM offers smaller growing companies from all countries and all sectors all the benefits of being traded on a world-class public market within a regulatory environment designed specifically for them. AIM is a flexible market with a simple admission process that allows more companies to experience life as a public company, and to capitalise on the resulting benefits for their businesses.