SEVERAL hundred Chinese companies have expressed an interest in floating on the Alternative Investment Market (AIM) after recent heavy lobbying by the London Stock Exchange, which runs the junior market.
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AIM Flourishes with Internationally Focused Companies
One of the more notable aspects of the success of the London Stock Exchange's Alternative Investment Market has been its ability to attract internationally focused companies. [ More ]
The Alternative Investment Market AiM was established in 1995 by the London Stock Exchange as a junior market for high growth venture companies. The London Stock Exchange now calls it is the most successful growth market in the world. Here are some reasons why:
Self regulated market - so Nominated Advisor (Nomad) determines suitability for listing
More flexible regulatory environment
Streamlined admission process and simplified procedures for raising capital on a secondary listing.
Possible to complete a listing within 3-6 months in some cases
No trading record required although desirable
No minimum amount of shares in free float
Compliance in hands of Advisors
Since launch in 1995, nearly 1,600 companies have been admitted, including almost 150 (and growing) overseas companies
Over 100 have moved to the Main Market in London
Total market capitalisation is over US$60Bn
AIM market value has increased by over 90% in the last 12 months
Very active IPO market with over 220 new issues last year raising nearly US$5Bn
An estimated 130 companies listed 1Q 2005
London Stock Exchange officials are building AIM into the international Nasdaq but with a more sensible, flexible and cost effective regulatory scheme. It is quickly becoming the market of choice for high growth companies seeking a platform for international growth.