Tuesday 1st July 2008
Nomads expect AIM slowdown to continue
The slowdown in activity on the junior market of the London Stock Exchange is set to continue, according to a poll of London-based nominated advisers (nomads) and brokers. An overwhelming majority of respondents (97 per cent) believe that there will be fewer than 70 flotations on AIM in the whole of 2008.
Next year may be little better, with nine out of ten nomads forecasting no more than 125 initial public offerings (IPOs) on the market. If these expectations are met, the total number of AIM IPOs in both 2008 and 2009 will be fewer than that recorded for either of the previous years.
However, nomads do not expect this decline to jeopardise their own existence. Just under two-thirds of the respondents expect between 61 and 70 firms to be doing business this time next year, while a further 14 per cent anticipate the current total of 71 will remain unchanged.
Tom Nicholls, partner at City law firm LG which commissioned the survey, remarks: ‘There is undeniably a downturn in activity on the AIM market this year, but growing international interest, notably from India.
‘Although the outlook is difficult on the domestic front, we believe the continuing international interest in AIM helps to explain the relative optimism of many firms over the prospects for next year.’
Nick Britton
There are currently no comments on this post.
Related Articles
People who read this article also read ...
Related sections
Interesting links
|
