Allenby Capital – AIM Market Update – Q4 2019

This blog gives you the latest topical news plus some informal comments on them from ShareSoc’s directors and other contributors. These are the personal comments of the authors and not necessarily the considered views of ShareSoc. The writers may hold shares in the companies mentioned. You can add your own comments on the blog posts, but note that ShareSoc reserves the right to remove or edit comments where they are inappropriate or defamatory.

Allenby have posted a useful note on the state of Aim with lots of data, click here to Download note

Key points:

December bounce but 2019 remained a down year

Total funds raised (new and further issues) in 2019 of £3.99bn, down 33% vs 2018
• Reduced activity driven by Brexit concern and political uncertainty
• Further raises down 15% to £3.35bn
• New issues down 68% to £649m (22 new joiners vs 59 in 2018)

22 new joiners to AIM in 2019
• Of the £649m raised, £151m for selling shareholders
• Average performance of 2019 AIM IPOs +6.3% (median +7.1%)
On IPOs where there were selling shareholders, performance +29.9% (median +25.4%)
• Average mkt cap on listing £89.9m (median £74.6m)
• Average raise at IPO £29.5m (median £13.2m)

Market favourable election result led to December bounce
• £552m raised in December +117% vs December 2018
• Theme continued into January, 3 IPOs and high volume of further issues so far

M&A activity remained high throughout 2019
• 34 companies acquired or in live bid situations by year end
• Equivalent to c.3.7% of all AIM companies
• Average bid premium of +52% (median +28%)

Download Note

Cliff Weight, Director, ShareSoc


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