AIM flotation costs rise
Smaller companies joining the ranks of the booming Alternative Investment Market paying higher percentage of costs in fundraising efforts
Smaller companies floating on the
London Stock
Exchange’s AIM market are facing increased costs.
Research by UHY Hacker Young shows
that for corporates raising less than £2m, the costs surged from 23.6% to 37.3%
as a percentage of capital raised in 2006.
The average cost of listing on
AIM
for companies raising £2m to £10m rose from 15.4%, as a percentage of
capital raised in 2005, to 18.1% in 2006.
Further reading:
US billionaire slams ‘dangerous’ AIM
Balls leaps to defence of AIM markets