London Stock Exchange is the premium stock exchange of the world. As a stock exchange it provides trading platform for trading of various kinds of securities. The stock exchange has different segments to meet requirements of the companies. In order to provide launch pad to smaller companies, Alternative Investment Market (AIM) was created by London Stock Exchange in 1995. Since 1995, this market has seen phenomenal growth and currently there are more than 3000 companies list on AIM. The companies which intend to raise capital upto 30 million pounds, can use Alternative Investment Market (AIM) as the market.
Since AIM is trading platform for smaller companies, LSE has created several facilities for this kind of companies. Once a company decides to join AIM, it is supposed to appoint NOMADs ( Nominated Advisors) which help companies in multiple ways.Nomads have a deep understanding of the needs and aspirations of companies seeking admission to AIM, and are highly experienced in guiding them through the flotation process. For example, if you want a Nomad for raising of funds in Financial Services sector, ALLENBY Capital is one such Nomad. London Stock exchange provides list of Nomads across locations in UK which have expertise in one particular sector of the economy.
The most attractive aspect of AIM is the lower fee charged by the exchange to the compapies which want to get quote of the their shares through AIM. If a company wants to raise upto 30 million dollars, the admission fee charged by LSE is zero. Such companies have to have only annual fees. LSE website says,' An annual fee of £5,618 is payable by all companies whose equity securities or certificates representing shares are admitted to trading.Annual fees are billed in the first week of April for the 12 months commencing 1 April and must be paid within 30 days of the invoice date.A pro-rata annual fee is payable by new applicants. To calculate the fee, take the number of calendar days, including the date of admission to trading up to and including 31 March, divide this number by 365 and multiply the result by the annual fee.'
AIM is not just the market for companies located in UK. AIM has been able to attract attention for companies across the world. There are more than 500 companies out of 3000 companies listed on LSE which are from out side UK. These international companies have the benefit of raising capital in the London market. AIM helps these companies in raising not just capital but also valuable foreign exchange.
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