Secondary issues sweep AIM board

AIM secondary issues have overtaken funds raised by new entrants at the time
of admission to trading for the first time since 1999, according to new research
by Grant Thornton Corporate Finance.

During the second quarter of 2007, AIM has recorded 83 admissions compared to
115 this time last year – a decrease of 28% – and in terms of new funds raised,
Q2 2007 generated approximately £2.41bn – a drop of 18% compared to Q2 2006

By comparison, secondary issues have been extremely strong and generated more
than £2.62bn in April and May alone, representing 46% of all AIM secondary
issues for the whole of 2006.

Midway through 2007, secondary issues are set to exceed the £4.3bn raised
during the whole of 2006 as successful AIM issuers returned to the market for
new capital, Grant Thornton UK reported.

Philip Secrett, a partner at Grant Thornton’s Corporate Finance team, said:
‘The trend is partly down to a substantial wave of large secondary issues
undertaken by property and private equity investment funds which have dominated
the market for the past 24 months or so.

‘There is also possibly a general growing appetite for a less risky
allocation of capital and arguably a lack of new issues able to consistently
attract a broad and substantial appeal within the investment community.’

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