Sharp drop in new Aim listings blamed on investor sentiment

City A.M. Reporter
LONDON’S junior stock exchange suffered a significant decline in listings over the last year according to new research out today from accountancy group UHY Hacker Young. There were 36 new listings on AIM in 2011-12, a 42 per cent fall from 2010-11, when 62 firms listed.

This is a 74 per cent decline from the 138 firms that listed in 2006-7, just ahead of the financial crisis. Money raised from new listings is also down 51 per cent, from £432m to £211m this year.

Laurence Sacker, of UHY Hacker Young, said: “The number of IPOs is driven by investor sentiment, so there is likely to be a significant number of businesses who have had to put off listing on Aim until investor confidence improves.” Until investors’ risk appetite recovers further, the number of new listings is likely to remain relatively low.”