AIM is a market for small and medium size growth companies, which provides them with access to a diverse set of investors and a supportive advisory community. Listing on AIM is the process of floating a company on the Alternative Investment Market (AIM), which is a sub-market of the London Stock Exchange (LSE) for smaller and growing companies.
AIM offers several benefits for companies, such as access to long-term growth capital, a flexible and balanced regulatory regime, and a lower cost of listing compared to the main market.
However, listing on AIM also involves some challenges, such as finding a suitable nominated adviser (NOMAD) and broker, meeting the admission requirements, and complying with the AIM Rules for Companies
AIM has a simplified regulatory environment that is tailored to the needs of growing companies. To list a company on AIM, you will need to follow these steps:
Determine the right timing for your business to come to market. Define your company’s objectives and preferred deal structure. Consider pre-IPO fundraising and complete an initial valuation.
Review your corporate structure and make sure that all contractual rights, assets and intellectual property are held under the AIM quoted company.
Choose a nominated adviser (NOMAD) and a broker, who will guide you through the admission process and ensure compliance with the AIM Rules for Companies. You may also need other advisers, such as lawyers, accountants, public relations consultants, etc.
Prepare an admission document, which is a key document that discloses information about your company, its business, its directors, its financial position, its risks and its future plans.
The admission document must comply with the FCA’s Prospectus Rules, unless certain exemptions apply. The NOMAD will review and approve the admission document, and liaise with the London Stock Exchange on your behalf.
Market your company to potential investors, through roadshows, presentations, meetings, etc. You will need to agree on the offer price and size, and allocate the shares to the investors.
Complete the admission formalities, such as signing the admission agreement, paying the fees, submitting the required documents, etc. Your company’s shares will then be admitted to trading on AIM, and you will become a public company.
These are the main steps involved in listing a company on AIM, but there may be other aspects to consider, depending on your specific situation and goals. You can find more information and guidance on the London Stock Exchange website, or consult with your NOMAD and other advisers.
