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 ]
For a small to medium sized Far East Asian company with aspirations for global business a domestic stock market can present obstacles to international growth:
Restrictions, expense or other difficulties in listing
Shallow depth of capital
Inability to attract international investors
Perception internationally that your company is merely a local operation.
Asian companies have opted for New York or London markets to maximise opportunities for more extensive:
Cost effective capital raising and in other currencies
Wider shareholder base
Higher liquidity for international equities
Global analyst coverage
Signals commitment to improved transparency & corporate governance
Difficulites of Nasdaq
Until recently, many small and mid cap companies seeking a market with international power and prestige joined the U.S. Nasdaq market. However, changes in US regulations and other factors have made this an expensive and otherwise unattractive option. Companies are turning to London and in particular its Alternative Investment Market - now the most successful growth market in the world.
In particular if your company will have a market capitalization of under 250 million U.S. an IPO in London is the smart choice:
London is the heart of global finance and home to the worlds most international capital markets.
Access to one of the worlds largest pool of investment funds - over US $4,500 billion
The most liquid international trading market - UK $3.25 trillion v US $1.08 trillion three times volume
Choice of 3 capital markets dependant upon company - LSE, AIM and OFEX
Flexible and intelligent approach to regulation
Global analyst coverage and international publicity
A London listing signals commitment to improved transparency & corporate governance.
A London listing allows a company to expand their business development opportunities and join their global peer group.
Cost comparison of London and US Markets
On the left are the Admission Fees applicable for Non-Domestic equities listed on the relevant exchange (does not include advisors fees). Maximum of $355,618 for LSE concerns to admission to the Full List.
Annual Fees required to maintain a listing of Non-Domestic equities on the relevant exchange. This does not include the cost of Compliance, Newswire or Reporting.