The AIM market, which has experienced remarkable growth during its 13-year-history, has seen its number of listed companies fall for the first time.
AIM, which is owned by the London Stock Exchange (LSE), was established as a place for small companies to raise money. However, the market has become so successful that it has been criticised by some who feel that its sheer scale has led to some small and mid-caps getting overlooked.
Perhaps the cynics will now feel more positive with the news that there are now 100 fewer companies listed on it than this time last year – 1592 from 1694. Also, October was the first month in ten years when no new money has been raised.
Ian Cliffe, a partner at accountancy firm haysmacintyre, believes that the decline is a short-term phenomena and understandable in terms of its past success and existing economic circumstances.
“In my opinion, the slowdown in the Aim market we are seeing now is a blip – a blip that is understandable given the current climate,” he said.
“It is true that this is unchartered territory for AIM, which as a relatively new market has experienced tremendous growth in the past seven or eight years.
“The fact that the number of listed companies is falling for the first time was always going to lead some observers to panic, although I think largely without reason.”
© Crimson Business Ltd. 2008