Rush of large Aim listings causes fee fall

Edith Hancock
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BIG BUSINESS listings on the Alternative Investment Market (Aim) have meant a sharp drop in listing costs, new research reveals.

Studies by national accountancy group UHY Hacker Young have revealed that professional fee costs have fallen sharply since 2013, with the amount paid by firms floating on Aim dropping from 9.5 per cent in 2013 to 7.4 per cent last year.

The fall comes as a rush of larger initial public offerings (IPOs), raising over £100m, drives down the average amount of professional fees.

Professional fees go towards paying nomads, legal advisers and auditors, along with commission for placing shares.

Over the last year, the average amount raised in IPOs rocketed, from £14.9m to £27.8m in 2014, as the total amount raised more-than doubled, from £911.3m to £2.3bn last year.

UHY Hacker Young partner Laurence Sacker said: “It is important that the cost of listing on Aim is kept down to a sensible level.”

“The market is demonstrating its ability to support larger IPOs. There is appetite there for companies with ambitious growth plans.”

Listings this year so far include pharmaceutical company Verseon, raising £321m, and online bingo group Stride Gaming, with £86m.

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