London Stock Exchange celebrates 25 years of AIM
London Stock Exchange celebrates the 25th anniversary of the launch of AIM this week.
Since its inception in June 1995, AIM has admitted over 3,800 companies from across the globe, raising a combined £118 billion in equity capital. 39% of this raised at admission and a further 61% raised in follow-on funding. Supporting companies throughout changing business and economic cycles, AIM has become one of the world’s most successful growth markets and is now home to companies with primary operations in 79 countries around the world.
Research published by Grant Thornton UK LLP this week, shows the significant value of AIM companies to the UK economy, and the support that AIM has provided to business growth over the past 25 years. The report has found that, in 2019 alone, AIM companies contributed £33.5 billion Gross Value Added (GVA) to UK GDP and directly supported more than 430,000 jobs. When economic activity through AIM companies’ supply chains and expenditure of employees in their local economies is taken into account, the overall economic impact of AIM companies is even larger – equivalent to £67.2bn in GVA and over 900,000 jobs. UK companies admitted to AIM have also continued to expand internationally. Over the last 10 years, these companies have grown their overseas sales from £7 billion in 2010 to £12.4 billion in 2019.
Nikhil Rathi, CEO, London Stock Exchange Plc and Director of International Development, LSEG:
“AIM was launched 25 years ago to provide a platform for growth companies to raise long-term patient equity capital. Since then it has become one of the most successful growth markets in the world, helping over 3,800 companies raise a combined £118 billion. This continued access to capital is particularly important today helping to support business in the recovery from the impact of the COVID-19 pandemic as firms look not only to strengthen their balance sheets but to fund innovation and growth.
“Ensuring that dynamic growth companies can realise their potential is vital to the UK’s current and future prosperity. Providing access to capital at all stages in a company’s development is a key contributor to success and we have a long-term commitment to supporting these entrepreneurial firms into the future. By enabling retail and institutional investors to access growth, AIM plays a vital part in the nation’s wealth creation helping to fund the creation of jobs, drive productivity and foster innovation and exports.”
Marcus Stuttard, Head of AIM and UK Primary Markets, London Stock Exchange plc:
“Since its launch, AIM has not only adapted and evolved to meet the needs of growth companies and investor appetite globally, it has also remained resilient through economic cycles. AIM’s ecosystem of entrepreneurial companies, alongside the long-term investors, nominated advisers, brokers and intermediaries that support them, have been key to its success. We remain committed to ensuring that high-growth companies across all stages of their development are able to access the capital they need for the next stages of their journey.”
John Glen MP, Economic Secretary to the Treasury:
“I’m delighted to celebrate AIM’s milestone anniversary with London Stock Exchange. The UK’s innovative and dynamic SMEs are the backbone of our economy. The fact that almost 60% of UK businesses on AIM are based outside London demonstrates its role in regional economic development and employment. The UK Government has backed AIM in a number of ways, whether through tax incentives or allowing AIM shares to qualify for ISAs, and we remain dedicated to supporting the UK’s high growth companies to achieve their potential.”
Philip Secrett, Head of Public Company Advisory, Grant Thornton UK LLP:
“Over the past quarter of a century AIM has established itself as a core part of the funding ecosystem in the UK. As our new report highlights, AIM’s robustness helps to create more resilient and sustainable businesses. AIM’s long-term economic role has been highlighted during the COVID-19 pandemic, and the market will have a critical role to play in supporting economic recovery and future growth across the UK economy.”
Find the AIM25 report here.