No fallout from AIM price change
The increase in the cost of listing on the Alternative Investment Market will not significantly affect the market and companies wishing to join it, says mid-tier firm Grant Thornton.
The costs of admission to the exchange and annual fees will increase proportionally according to the market capitalisation of a company, except for companies worth less than £5m.
For companies capitalised below £10m – currently 60% of those listed – the increase in the admission fee will be a maximum increment of £2,500, a small increase to the total cost of an AIM admission.
Those whose market capitalisation stands between £10m and £50m – about 30% of the market – will have to add £12,500 to their bill and those valued over £50m, representing just 8% of AIM companies, will have to pay £45,000 more.
Annual fees will be between £5,000 and £20,000, but companies with a market capitalisation of less than £350m will pay the minimum. Those above that size will pay £5,000 plus £7.50 per £1m market capitalisation over £350m.
Previously, the cost of admission was £5,000 per year to remain on the market for all companies.
A spokesman from the London Stock Exchange told AccountancyAge.com the cost to small companies would remain the same but there would be an incremental fee increase, according to the size of the company, which would still be at a 50% discount on the main market.
He said the reason for the changing price structure was due to ‘the principle of applying the same pricing structure throughout our market’.
In terms of new companies, the smaller companies coming into AIM will be unaffected.
He added the annual fee increase would only affect one AIM-listed company: ‘Ongoing fees will remain £5,000 for 99% of the companies listed.’
Last week the LSE announced it was changing its pricing structure and a new set of rules will become active in April.