City group in talks over AIM transformation plan
A group of City executives and financiers has cooked up an audacious plan to revamp the Alternative Investment Market (AIM).
The group, led by former London fintech boss Jon Prideaux, want to rebrand and relaunch the junior index as the ‘Global Growth Exchange,’ according to a presentation seen by Reuters.
The plan would allow new investors to take a stake in the market, two people with knowledge of the talks said.
AIM was first established in the 1990s to help smaller firms raise capital and is specifically designed for smaller companies with high growth potential.
Jon Prideaux told Reuters: “We believe that there’s an opportunity for the London ecosystem to provide a compelling public alternative to many companies worldwide which are currently using private capital to fund their growth.”
He added: “We plan to discuss the details of our strategy and approach with LSEG soon. In preparation for that meeting, we have consulted widely with brokers, market makers, fund managers and other interested parties.
“We have been gratified by the very widespread support that we have received.”
LSEG: ‘AIM is not for sale’
Prideaux did not give details on proposals but a source who had met the group told Reuters the plan would involve the London Stock Exchange Group (LSEG) spinning off AIM to allow new investors to come in.
However, LSEG have firmly rejected any notions of a deal.
“AIM is not for sale,” LSEG said in a statement.
“It is a vital component of our strategy to build a funding continuum that is seamlessly connected so that companies can start, grow, scale, and stay in the UK.
“Over the past 30 years, AIM has established its position as the preeminent market for dynamic high-growth business supported by a remarkable community of companies, advisors and investors.”
LSEG’s boss David Schwimmer last week dismissed questions that the group would sell the wider London Stock Exchange following a mass exodus in the past two years.
88 companies left the LSE last year, including Paddy Power’s owner Flutter, Royal Mail’s parent company IDS and tech darling Darktrace.
AIM-listed firms have fallen below 700 for the first time since 2001, according to accountancy firm UHY Hacker Young.
The number of AIM companies worth over £1bn has dropped by 80 per cent since the start of 2022 and almost halved over the last year, according to data from the London Stock Exchange.