Secondary issues reach record levels on AIM

This year is proving to be a record year for secondary issues on AIM, the London Stock Exchange’s Alternative Investment Market, according to research published by KPMG Corporate Finance.

AIM has raised a total of £1.1bn in secondary issues for the first ten months of 2004, the highest level of since its inception in 1995. The market also enjoyed a record year for IPOs with 179 new companies raising a total of £1.9bn.

As of the end of October, the total number of AIM companies stood at 958, 100 of which are international, an increase of 32.7% over the previous 12 months. Growth is also reflected in the total market capitalisation, which increased by 8.6% in October and rose 77.8% over the previous 12 months.

David Simpson, head of the quoted company team at KPMG Corporate Finance, said: “Fund raising levels are a barometer of confidence and a guide to future corporate activity. This year’s record AIM fund raising levels suggest a more bullish attitude among corporates despite the flat economic backdrop. It also reflects increasing activity from UK and overseas natural resources companies off the back of the rising price of commodities.”