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Summary
- The Alternative Investment Market (AIM) is a sub market of the LSE and was established in 1995 aimed at offering access to capital for smaller high growth firms
- It currently has almost 850 companies listed, also over 150 companies have moved from AIM to the main market.
- AIM has three indexes, which are tracked by UK-based financial firm the FTSE Russell Group, which are the FTSE AIM UK 50 Index, the FTSE AIM 100 Index, and the FTSE AIM All-Share Index
The Alternative Investment Market (AIM) is a sub market of the London Stock Exchange and is aimed at smaller high growth companies seeking to raise capital via the public market.
AIM has fewer regulations compared to the main market and has been called a light-touch regulation system due to its self-regulatory listing rules, thus allowing more entrepreneurial firms to list on the exchange.
Contrastingly, the LSE requires companies to have existed for at least three years, with a market value of at least £700,000 and a minimum of 25 per cent floating of its share capital amongst other rules.
AIM listed Companies
The AIM, which was established in 1995, currently has (839 companies as of 4 June, listed on the market. Companies typically float an initial public offering (IPO) with the goal of raising between £1m and £50m on AIM, although the capital raising amount may be larger on some occasions.
Also Read: How Does the AIM Market Work?
The companies on AIM constitute approximately 37 different sectors and 90 different sub- sectors. Moreover, AIM listed companies’ hail from about 26 different countries, and over 250 companies listed on AIM come from outside of the UK. Thus the exchange is one of the most diverse exchanges in the world, on a proportional basis.
Largest AIM companies by market cap
Although some companies which list on AIM sometimes use it as a springboard to move to the main market. Over 150 companies have moved from AIM to the main market thus far. Although several companies with a market cap of over £1 billion are still listed on AIM.
Some companies with the largest market cap on AIM as of 4 June at 10:52 AM GMT+1 are:
- ASOS Plc (LON: ASC) with a market cap of £4.842 billion
- Boohoo Group Plc (LON: BOO) having a market cap of £3.860 billion
- And HUTCHMED (China) Limited (LON:HCM) with a market cap of £3.156 billion
Also Read: What are the top FTSE AIM companies?
FTSE Russell Group
The AIM exchange has three real-time indexes which are tracked by the FTSE (Financial Times Stock Exchange) Russell Group. They are the FTSE AIM UK 50 Index, the FTSE AIM 100 Index, and the FTSE AIM All-Share Index.
The FTSE Russell Group is a UK based financial company focused on providing indexing services and offerings to global financial markets, which markets can use as benchmarks.
The FTSE Group also maintains the LSE’s key index, the FTSE 100, on the main market. The London Stock Exchange Group (LSEG) owns the FTSE Russell Group.
