AIM market regaining strength, says PwC
The AIM pipeline is the strongest it has been in the Midlands for the past two years, according to PricewaterhouseCoopers (PWC). Despite a reduction in the number of initial public offerings (IPOs), market experts at PwC say there are clear signs of “cautious optimism”.
Despite a buoyant first quarter, during which time eight new listings raised £217m, IPO activity on AIM fell short in the second quarter. In what is traditionally a busier period, ten IPOs were made with a total value of £133m.
Despite the drop, PwC said companies are “increasingly showing interest in achieving the right mix of debt and equity” in order to fund their future growth plans.
Paul Norbury, partner and Midlands AIM leader at PwC, said: “We have seen an upturn in interest from manufacturing and technology companies seeking to put their growth plans on a firm financial footing by balancing their use of debt and equity.
“When considering an IPO on AIM, businesses are often attracted by the additional flexibility equity funding provides, as it allows them some additional control over their working capital.”
Norbury added: “With some high profile IPOs on the main market now imminent and others having completed, it is only a matter of time before this boost to investor confidence begins to rub off on AIM.
"With a strong pipeline already in place, all that is needed is a few companies to make the move successfully, at the right price, and the backlog of impending AIM flotations will start to unwind.”
