London Stock Exchange’s AIM celebrates 20th anniversary

  • London Stock Exchange’s world leading growth market, AIM, celebrates twentieth anniversary
  • Over 3,600 companies have joined AIM since its inception, raising £92 billion
  • Research highlights AIM’s economic impact on the UK, equivalent to £25 billion in GDP per annum and 731,000 in UK jobs

London Stock Exchange this month celebrates 20 years since the launch of AIM, the world’s most successful and established market for growth companies. Since June 1995, over 3,600 UK and international companies have joined AIM, raising £92 billion through new and further issues.

Grant Thornton’s recent research highlights AIM’s impact over the past 20 years, notably AIM’s ongoing annual contribution to the UK economy, equivalent to £25 billion in GDP. Additionally, the report shows that the public equity market for growth companies has a far-reaching impact on the economy as a whole, including  generating  almost three quarters of a million jobs in Britain alone. 

To celebrate the occasion Rt Hon Greg Hands MP, Chief Secretary to the Treasury and Xavier Rolet, CEO, LSEG opened trading this morning at London Stock Exchange. The event was attended by CEOs of AIM companies, as well as members of the broader AIM community of nominated advisors, investors, brokers, market-makers and liquidity providers and other supporters. This morning the annual AIM conference will feature a keynote speech from Chris Leslie MP, Shadow Chancellor.

Xavier Rolet, CEO, London Stock Exchange Group:
“Over 3,600 companies have joined AIM in the last 20 years. Central to innovation, job creation and productivity, these companies have played a unique role in fuelling economic prosperity in the UK, a dynamic recognised by government, business and investors.

“AIM is a great British success story and today, it is the most successful market for ambitious growth companies in the world. Two decades after it was established, the diverse community that supports these businesses, have helped to make the market a vibrant and thriving one. Recent research overwhelmingly supports the value of AIM to our society, and we are looking forward to continuing to work with the global AIM community on the market’s development in the years to come”

Rt Hon Greg Hands MP, Chief Secretary to the Treasury:
“Britain’s innovative and dynamic SMEs are the backbone of our economy, which is why I’m delighted to celebrate twenty years of AIM, London Stock Exchange’s stock market for smaller companies.

“AIM and London Stock Exchange have provided an active and thriving market for a vast number of high growth SMEs, significantly contributing to the wider UK economy. That’s why this Government has supported AIM by removing Stamp Duty on the purchase of shares on growth markets and allowing AIM shares to be held in ISAs.”

Key statistics:

  • AIM was launched with 10 companies, with an aggregate value of £82 million, on 19 June 1995
  • In 2015, AIM is home to 1,074 businesses, with a combined market cap of £75 billion
  • In total 3,602 companies have been admitted to AIM since its launch, raising £92 billion - £40 billion at IPO and £52 billion through further fundraisings
  • The average market capitalisation of an AIM company has grown from £8.2 million in 1995 to £70 million in 2015
  • Household names that have floated on AIM include ASOS, Dominos, FeverTree Drinks, Majestic Wine,and YouGov
  • Since the financial crisis in 2008, over 530 companies have joined AIM, raising over £7.3 billion. The amount raised at admission in 2014 was 135 per cent higher than the amount raised at IPO in 2008
  • Companies from across all sectors are represented on AIM, including 65 consumer goods companies have an aggregate market cap of £5,305 million; 119 technology companies represent a combined market cap of £10,074 million and 188 industrial companies have an aggregate market of £10,235 million

Key findings from the Grant Thornton report:

  • The overall economic impact of UK AIM companies is equivalent to £25 billion in GDP and some 731,000 jobs
  • The total turnover of UK incorporated AIM companies is over £50 billion
  • In the first year post admission, companies with turnover of less than £5 million grow by 200 per cent in turnover and more than 100 per cent in employment
  • There is a correlation between the location of AIM companies and areas with high levels of patents granted

Read more about AIM over the past 20 years: visit

www.lseg.com/aim20-report-2015

 

- Ends -

Media:

Alexandra Ritterman
Tom Gilbert

+44 (0)20 7797 1222
newsroom@lseg.com

Notes to editors:

About London Stock Exchange Group:

London Stock Exchange Group (LSE.L) is a diversified international market infrastructure and capital markets business sitting at the heart of the world's financial community. The Group can trace its history back to 1698.

The Group operates a broad range of international equity, bond and derivatives markets, including London Stock Exchange; Borsa Italiana; MTS, Europe's leading fixed income market; and Turquoise, a pan-European equities MTF. It is also home to one of the world’s leading growth markets for SMEs, AIM. Through its platforms, the Group offers international business and investors unrivalled access to Europe's capital markets.

Post trade and risk management services are a significant part of the Group’s business operations. In addition to majority ownership of multi-asset global CCP operator, LCH.Clearnet Group, LSEG operates CC&G, the Italian clearing house; Monte Titoli, the T2S-ready European settlement business;  and globeSettle, the Group’s newly established CSD based in Luxembourg.

The Group is a global leader in indexing and analytic solutions. FTSE and Russell Indexes offer thousands of indices that measure and benchmark markets around the world.  The Group also provides customers with an extensive range of real time and reference data products, including SEDOL, UnaVista, Proquote and RNS.

Following the acquisition of Russell Investments, LSEG conducted a comprehensive review of the investment management business to analyse its strategic fit with the Group. This was concluded in February 2015, and LSEG is now exploring a sale of the business in its entirety.

London Stock Exchange Group is a leading developer of high performance trading platforms and capital markets software for customers around the world. In addition to the Group’s own markets, over 35 other organisations and exchanges use the Group’s MillenniumIT trading, surveillance and post trade technology.

Headquartered in London, with significant operations in North America, Italy, France and Sri Lanka, the Group employs approximately 4,700 people.

Further information on London Stock Exchange Group can be found at www.lseg.com