IPO Alternatives: London Stock Exchange AIM - Part 4

AIM Overview

AIM, operated by the London Stock Exchange, tends to work best for companies that have a capitalization and valuation from $20MM US to $300MM US. Filing or entry costs, excluding fundraising, are approximately $600,000 US, with ongoing yearly costs of around $100,000. Capital raisings activities tend to be in the $4MM to $40MM US range with the average cost of capital at approximately 9%. Investors are largely institutional; however there is a higher percentage of retail investment than on the official list. Substantial investor tax benefits may be applicable as AIM stocks are deemed “unlisted” and “unquoted”.