November arrivals: AIM IPO process needs a total re-think
It was yet another dire month for new arrivals on AIM with only one new joiner and several sizeable departures. The high cost of AIM admission is clearly a major barrier for many small companies in need of capital who are thinking of joining the stock market. The London Stock Exchange needs to get behind a more cost-effective solution for AIM.
At the end of November 2019 there were 872 companies on AIM, with the total market value £100bn. This compares with 876 companies at the end of October 2019 when AIM’s market value was £96.8bn. There was just one new arrival and four departures in November 2019. Longboat Energy (LON:LBE) was the sole newcomer to AIM in the month. It was established by the former management team from Faroe Petroleum to fast-track the creation of an independent full-cycle North Sea oil and gas company. The directors believe there is a unique opportunity to build a meaningful North Sea business on a…