Companies still choosing to list on Aim despite alternative of Standard Listing

THE number of companies choosing to float on the Alternative Investment Market (Aim) has remained robust despite fresh competition from the new Standard Listing on the London Stock Exchange (LSE).

Standard Listing was introduced by the LSE in April last year and was expected to lead to a mass exodus of companies from the Aim because of its lighter regulatory requirements.

But according to Pricewaterhouse Coopers (PwC) there has been no evidence of this in the first quarter of 2010.

PricewaterhouseCoopers director Simon O’Brien said: “Looking forward, the new Standard Listing on the Main Market – which came into effect on 6 April – may reduce the volume of companies listing on the Aim market, but this remains to be seen.”

However the UK based accountancy firm did not rule out the threat that the Standard Listing might pose to Aim in the near future.

“Companies could be attracted by the Standard Listing, with its reduced regulation in addition to some of the perceived advantages of being on the Main Market, so we may well see companies go for a Standard Listing in the coming months that would previously have floated on Aim,” O’Brien added.

A total of eight companies have listed on the Aim since the turn of the year. According to PwC this was significantly higher than on the Main Market, which has experienced a cautious recovery in the last quarter.