Bank of America Merrill Lynch (BAML) looks set to withdraw its status as a nominated adviser (nomad) on Aim, reports revealed yesterday.
BAML’s departure would leave only three remaining large “bulge bracket” banks advising Aim-listed companies. It would also leave oil and gas firm Bowleven without a nomad.
A number of the big investment banks became Aim nomads during the commodities supercycle, but have since started to exit the market as institutional investors focus more on bigger firms.
If the American bank departs, it would follow in the footsteps of UBS, which dumped its nomad role two years ago, Deutsche Bank, which withdrew last year, and Morgan Stanley, which has re-focused on the FTSE 100.
An Aim spokesperson told City A.M.: “Aim is by far the most successful small-cap market in the world, and that’s partially down to the variety of its advisers and investors. There are still big banks acting as Aim nomads, including JP Morgan, RBC and HSBC.
“It’s also worth noting this year’s IPO stats: 68 companies have joined Aim in 2014, raising £2.4bn. This is the highest amount raised since the financial crisis. Across the whole of 2013, new issues on Aim raised £1.18bn.”
BAML and Bowleven did not comment.