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.

Continued strong fundraising activity on AIM

Allenby Capital, whose CEO Nick Naylor spoke at ShareSoc’s Investing Masterclass on Remuneration, have just issued their quarterly update which shows the way the AIM market continues to help companies requiring capital. AIM is playing an important role in these difficult Covid times, writes ShareSoc Director Cliff Weight.

Key points in the report:

  • AIM continued its strong fundraising performance in Q3 2020. By the end of September, the total funds raised year to date of £4,085m had already surpassed the £3,997m raised in the full year 2019.
  • The main 2020 theme of a quiet IPO market being offset by a rampant further issues market continued through the third quarter.
  • There was the usual summer slowdown in August but the £222m raised in that month was still 16% higher than the August 2019 total.

The IPO market has been slow but not dead.

  • Six new companies joined AIM in the Q3, taking the total for the year to 15.
  • The average performance to date of these new AIM companies is +26%.
  • IPO activity has carried on through to October with five listings currently expected to start trading in the month or in early November.

The share price performances of companies on AIM has been strong since the market lows in March this year.

  • In that month the average market cap of all AIM companies was £88.2m but this figure hit an all-time high of £130.6m by the end of September.
  • In addition to share prices recovering from the March lows there has been a pick up liquidity this year.
    • On average, AIM stocks have traded 3.1% of their market capitalisations per month in 2020 up from an average 2.1% per month in 2019.
    • Total trading on AIM amounted to £20.3bn in Q3, up from £14.7bn traded in the comparative period last year.

Download the Allenby note here

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