Companies listed on the Alternative Investment Market (AIM) have seen the average value of the daily trading of their shares rise by 41% over the last twelve months to £327,580 in 2017/18 from £232,140 in 2016/17, says UHY Hacker Young, the national accountancy group.
UHY Hacker Young says that the sharp increase in AIM liquidity has been driven by increasing investor interest in the growing number of institutional investor grade companies listed on AIM. These include:
- Online fashion and beauty retailer Asos
- The premium drinks producer Fevertree
- Online fashion and lifestyle retailer Boohoo.com
- Litigation funder Burford Capital
UHY Hacker Young says that the London Stock Exchange has put a lot of effort in the last few years into ridding AIM of its ‘wild west’ reputation. Further reforms take place on September 28, when companies on the AIM market will be obliged to comply with a corporate governance code in the latest of a series of regulatory reforms in the past few years. The reforms are aimed at improving investor confidence in AIM.
The improved reputation of AIM has helped encourage larger and more financially stable UK-based businesses onto the market. Nomads and brokers have also been more reluctant to list more speculative companies on AIM.