64 deals £1.780 Billion

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PEARLS OF WISDOM

   

AIM   

Background
     
Second tier market, established in June 1995    
     

Operated and monitored by London Stock Exchange

   
     
Benefits    
     
Benefits, are effectively the benefits of flotation, in summary:
  1. finance for growth

  2. share valuation and market for trading

  3. "prestige benefits

   
Disclosure requirements
     
  1. price service information

  2. significant changes in shareholdings

  3. changes in directors and advisers

  4. transactions over the class test

  5. interims to be published within four months

  6. final accounts within six months

   

Trading

     
  1. no requirement for market maker

  2. matched bargains arranged by nominated broker

   
Advantages
     
It’s advantages over a full/official list:
  1. unquoted for tax purposes

  2. no minimum shares in issue

  3. no minimum trading record

  4. nomads

  5. prospectus not listing particulars, thus covered by POS regulations

  6. cheaper?

   
     
Aim market statistics
     
London Stock Exchange - AIM market statistics    
     
At September 2005, Growth Company Investor reported that AIM had 1,277 companies with a combined valuation of over £47 billion.

This report showed that disclosed institutional holdings represented 40.9%. The most active institutions by number of investments at September 2005 is shown below

Most Active Institutions bY number of investments

Institution

Number of investments

Value £m

Fidelity 113 693
F&C 112 300
Artemis 94 451
Gartmore 65 196
RAB Capital 58 205
Framlington 56 222
Chase Manhattan* 52 93
Invesco 51 221
Pershing Keen* 48 31
Merrill Lynch 46 244
Source: www.growthcompanyinvestor

*Denotes nominee accounts. A nominee account is one in which the named holder is the legal owner of the shares, yet holds the assets in it on behalf of another, the beneficiary.

New issues: Most Active Institutions in 2005

Institution

Number of investments

Value £m

Fidelity 26 123
Invesco 22 114
RAB Capital 28 105
Artemis 22 94
Lansdowne Partners 10 78
Merrill Lynch 17 63
Moore Capital Management 9 60
Jupiter Asset Management 11 59
F&C 24 58
Goldman Sachs 12 55
Source: www.growthcompanyinvestor

*Denotes nominee accounts. A nominee account is one in which the named holder is the legal owner of the shares, yet holds the assets in it on behalf of another, the beneficiary.