Raising capital to support your growth
AIM - Information for Companies
AIM is London Stock Exchange’s market for small and mid cap growing companies. AIM is a platform for companies seeking access to capital to realise their growth and innovation potential. AIM is firmly established as a leading growth market with the critical mass to provide firms from a wide range of countries and sectors with access to a diverse set of investors, who understand the needs of entrepreneurial businesses.
Since its launch in 1995, over 3000 companies have joined AIM – raising more than £60 billion in new and further capital fundraisings. This financing has enabled AIM companies to fund their development and pursue their growth ambitions. AIM plays a vital role in the funding environment for small and medium sized enterprises as they develop their businesses.
Why is AIM unique?
AIM has an extensive, diverse and committed community of stakeholders. Specialist advisers are crucial to the market’s success, and range from dedicated Nominated Advisers (Nomads), brokers and market makerswho play a central role in the life of an AIM company, to lawyers, accountants and specialist consultants. Other important participants include public relations and investor relations agencies who help companies join the market and make the most of their AIM quotation.
Find out more on our FAQs page.
Smaller companies from around the world and at different stages of development are able to join AIM. As an Exchange-regulated market, AIM provides a wide range of international businesses the ability to access the capital, liquidity and profile of London’s capital markets.
Currently there are over 500 AIM companies with the majority of their operations outside the UK in over 100 countries. This strong international representation reflects the fact that AIM is an ideal public market for growing and entrepreneurial international businesses seeking to expand and raise their global profile.
Benefits of joining AIM
Companies joining AIM gain a wide range of benefits, including:
- Access to the world’s largest and deepest pool of capital for investment to support companies at admission and further fundraisings
- A quotation on one of the most liquid capital markets for trading in the shares of small and growing international companies
- Support from experienced advisers who understand the needs of ambitious international companies
- A higher profile among London’s unrivalled community of investment analysts specialising in sectors and regions globally
- Promotion of the company’s image and brand on an international scale
- A flexible and responsive system of regulation especially geared to the needs of smaller, growing businesses
Choosing your advisers
The Nominated Adviser (Nomad), broker and other advisers play a central role in a company’s admission to AIM. It is important that a company is confident that it can establish a good working relationship with the appointed Nomad as they will be working closely together at admission and on an ongoing basis. In choosing its advisers, a company will want to ensure that they:
- understand its business
- have appropriate experience in the sector
- share the company's vision for the future.
The role of Nominated Advisers
Nomads are corporate finance advisers approved by the London Stock Exchange to act in this capacity. To obtain approval as Nomad, a firm must meet the eligibility criteria set out in the AIM Rules for Nominated Advisers.
A Nomad is responsible for advising and guiding a company on its responsibilities in relation to its admission to AIM as well as its continuing obligations once on market. To help fulfil this role, the Nomad will:
- undertake extensive due diligence to ensure a company is suitable for AIM
- provide guidance throughout the flotation process
- prepare the company for being on a public market
- help prepare the AIM admission document
- confirm the appropriateness of the company to London Stock Exchange
- act as the primary adviser regarding compliance with the AIM rules throughout a company's time on AIM.
The role of brokers
A broker is a securities house and a member of London Stock Exchange. The broker’s role is to:
- assess the level of investor interest in a company's AIM securities, at admission and in the run-up to any further issues
- advise on market and trading related issues
- advise on the pricing of shares and investment opportunities.
Under the AIM Rules for Companies, every AIM company must retain a broker at all times. Often the Nomad firm will also have a broker team and a company may decide to appoint the same firm as Nomad and broker. In such case, the firm will need to ensure adequate safeguards to avoid potential conflict of interest from arising between the two advisory services.