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%)
Cliff Weight, Director, ShareSoc
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