- £2.1b raised in London Stock Exchange AIM IPOs for 62 U.S. companies listed on London's AIM across 20 industries
- Pace of secondary offerings for U.S. companies listed on London's AIM increases from £105m to £180m to £260m; totaling £545m
- 22% of U.S. company listings on the London Stock Exchange's AIM included selling shareholders
- U.S. accredited investors and QIBs participate in London AIM IPOs, provide 20% of IPO and secondary funds raised on London's AIM
London AIM IPOs
The 62 U.S.
companies that completed IPOs on London's AIM during the last three years raised an
average of £34 million with 75% raising between £7.5 million and £100 million.
Over the last three years, the average London Stock Exchange AIM IPO raised £27
million; however, it’s important to distinguish between IPOs for ‘operating
companies’ listing on London's AIM and ‘investment vehicles’.
The table below illustrates the dramatic impact that London AIM IPO funding of
‘investment vehicles’ had on the market.
Entire Market 2005 - 2007 |
Number of London AIM IPOs
|
Gross Funds Raised
(in £ billions)
|
Average Funds Raised
(in £ millions)
|
‘Investment
Vehicles’
|
206
|
13.01
|
63
|
‘Operating
Companies’
|
589
|
8.20
|
14
|
Total
|
795
|
21.21
|
27
|
In contrast, the next table shows that a greater proportion
of U.S. company listings on London's AIM were for operating companies listed on the London Stock Exchange's AIM, raising an average of £24 million,
70% more than the market average of £14 million.
U.S. Companies 2005 - 2007 |
Number of London AIM IPOs
|
Gross Funds Raised
(in £ billions)
|
Average Funds Raised
(in £ millions)
|
‘Investment
Vehicles’
|
12
|
0.92
|
77
|
‘Operating
Companies’
|
50
|
1.19
|
24
|
Total
|
62
|
2.11
|
34
|
London AIM Industry
Dispersion
The 20 industries in which the 62 U.S. companies listed on London's AIM operate are quite diverse; however, there is a concentration of oil
and gas producers listed on London's AIM in Texas and concentrations
in technology, including; digital media, biotech and cleantech, between Boston and Washington D.C., in Florida and in California. In fact, the “Automobiles & Parts”
companies listed on the London Stock Exchange's AIM in the chart below are fuel cell developers or zero emissions vehicle
manufacturers.
London AIM Selling
Shareholder Activity
14 of the 62 U.S. companies that completed IPOs on the London Stock Exchange's AIM
during the last three years included selling shareholders who were often either
founders of the company, longstanding members of executive management or the
board of directors, commercial partners who had made a strategic investment in
the company or VCs/PE Firms who invested in and nurtured the company for
several years prior to its London Stock Exchange AIM IPO. While
selling shareholders are most common in conjunction with a London AIM IPO, U.S.
company insiders have sold in the aftermarket on London's AIM in organized transactions on
three occasions; twice as part of secondary offerings on London's AIM and once on a standalone
basis. In all three instances, the
companies listed on London's AIM were performing exceptionally well with the organized insider selling
driven by a need to “satisfy excess demand” for the company’s London Stock Exchange AIM-listed shares.
U.S. London AIM Accredited Investor and Qualified
Institutional Buyer (QIB) Activity
U.S.
accredited investors and QIBs are permitted to participate in London Stock Exchange AIM IPOs and
secondary offerings on London's AIM. In fact, they
provided 20% of the London AIM IPO funding, or £425 million, for the 62 U.S. companies
that completed IPOs on London's AIM during the last three years. They also provided £100 million for U.S.
company secondary offerings on London's AIM, again 20% of the total, over the last three years.
London AIM Secondary Offerings
The secondary offering market for U.S. companies listed on the London Stock Exchange's AIM has been strong,
increasing from £105 million to £180 million to £260 million from 2005 to 2007
for a CAGR of 58%.
