Research, conducted by accountants Smith and Williamson, shows that 73% of companies on the exchange said that raising money was their main reason for floating.
Also, more than half of the companies polled expected to raise additional funds during 2007 and 70% expect to make an acquisition.
Business confidence is high, with 65% of the senior decision makers polled saying they were ‘confident’ or ‘very confident’ about the next 12 months.
The high confidence amongst AIM-listed companies suggests that 2007 could be a strong year for merger and acquisitions (M&A), and the market looks set to be used as a springboard for this activity, the report says.
John Cowie, head of AIM at Smith and Williamson, said: “When business confidence is high, the M&A market thrives.
“There is obviously some correlation between optimism about the future and the desire to make acquisitions - companies are clearly looking to make use of AIM to facilitate this.”
The survey also found that AIM appears to be able to satisfy the financial requirements of those listed on it, with 89% of businesses saying they did not intend to make a make a full listing.
“This would appear to confirm that AIM's reputation as a market in its own right - rather than London's ‘junior market’ - is firmly established,” Cowie said.
“Companies are happy to list on AIM and have no intention of stepping up. Indeed, traffic has been generally one way, from the full list down to AIM.
“Its lighter touch regulatory regime and the attractive tax breaks it offers coupled with the support of the investment community has made AIM hugely successful,” he continued.
© Crimson Business Ltd. 2006
