The opportunity to raise finance for your company’s development
An admission to AIM provides access to long-term investment capital for the development of your business. The raising of finance can be undertaken by your company at the time of the initial flotation on AIM, or at a later date through subsequent issues of company shares.
An exit route for your existing shareholders
AIM provides the opportunity to increase your company’s shareholder base and thereby provide existing shareholders in your company an exit or part exit route.
Creating a heightened profile for your company
Flotation on AIM creates a higher public profile for your company with the opportunity to use your public market profile to promote the company and improve brand awareness.
Enhancing the status of your company with your customers and suppliers
A flotation on AIM may improve your company’s credibility and standing, reassuring your customers, suppliers and even banks and insurers.
Less onerous admission requirements
AIM’s more lenient admission requirements and continuing obligations make it less onerous and costly than floating on The London Stock Exchange’s Main Market.
No minimum shares in public hands
The AIM rules do not require your company to put a minimum number of shares on the market. The Main Market, in contrast, requires companies to have a minimum 25% of their shares listed.
It should be noted, however, that without a reasonable amount of your company’s shares on the AIM market, liquidity in your shares may suffer.
No prior shareholder approval required for most transactions
This is an important benefit for companies that seek to grow through acquisition. It ensures that transactions can be undertaken quickly, if required, without first requiring the approval of your company’s shareholders. (Reverse takeovers or disposals resulting in a fundamental change to the business may require shareholder approval).
No rules on the minimum size of company that can float on AIM
This provides the opportunity (subject to investor appetite) for small or early stage companies to join AIM.
AIM is unquoted for the purposes of tax, meaning that AIM investors in your company may benefit from a number of tax reliefs.
Corporate governance requirements
The AIM rules relating to corporate governance are more lenient for companies than The London Stock Exchange’s Main Market.