Aimzine is a FREE online magazine for investors and everyone involved with AIM companies. If you are not already registered to read Aimzine please click HERE

Marcus Stuttard has recently been appointed as the new Head of AIM at the London Stock Exchange (LSE). Marcus, 39, joined the LSE as a Regulatory Adviser in 1994. He has held a variety of roles at the Exchange, including responsibility for the Exchange’s relationship with Corporate Advisers before becoming Deputy Head of AIM in March 2006.

In the following article Marcus has kindly provided Aimzine with his views on the challenges and opportunities for the AIM market today:

AIM - Very Much Open for Business

by Marcus Stuttard

As the new Head of AIM, I am delighted to have the opportunity to contribute to Aimzine.

These remain challenging times for the global economy. Today, we are in the first global economic recession in over 60 years, which has forced unprecedented action by governments, central banks and regulators across the world. Now established as an integral part of the fabric of the City of London, AIM has not been immune to the turbulence in the world’s financial system.

But, despite the financial turmoil, capital raising on AIM has continued, with companies such as Max Property Group, which came to market in May, able to raise significant sums of money. While new arrivals such as Max are very welcome, AIM is, however, more than just an IPO venue, and provides firms with more than just “one-off” financing. Once quoted, thanks to London’s deep pool of investment capital, companies can return to the market to access further funds to help them develop and grow their business.

£500 Million Raised in May

So far this year AIM companies have succeeded in raising nearly £1 billion through further issues, which they have used to pay off debt, rebuild balance sheets or fund growth. This robust activity in AIM’s secondary market is a reflection of long-term investor support for our small and mid cap companies, even in difficult market conditions. SMEs will be central to economic recovery, and dynamic public markets like AIM, where companies can raise equity finance to fund their growth, will continue to support and drive entrepreneurial activity.  So while these are tough times AIM remains very much open for business - during May alone over £500 million was raised on the market.

And the Exchange is not standing still; we continue to help companies make the most of their AIM quotations by supporting the wider take up of equity research and through initiatives, such as PSQ Analytics and our regional investor road show programme, and we are continuing to urge the Government to give Venture Capital Trusts greater freedom in the investments they make in small cap companies. These measures are designed to give companies the tools they need to help them communicate with investors and to increase the sources of liquidity available to them.

We intend to continue to build on AIM’s strong global franchise. Our willingness to leverage the success of the AIM model in Italy and Japan through AIM Italia and Tokyo AIM is testament to our belief in the strength of the AIM model. Both markets have recently reached significant milestones in their development: road shows across Italy confirmed investor and issuer interest, and AIM Italia welcomed its first two companies - Neurosoft and IKF - in May, while Tokyo AIM has now received its operating licence from the Japanese FSA.

Compelling Offering

Looking to the future, the Exchange remains committed to providing small and medium-sized companies in the UK and abroad with the capital they need for expansion. While there is no question that current market conditions present challenges for capital markets and the companies they serve, AIM’s market structure, specially designed to meet the needs of small and medium-sized companies, will continue to create a compelling offering for companies seeking to raise funds on a public market.

I look forward to overseeing AIM’s continued development as a global growth market.

Marcus Stuttard - Head of AIM             

If you would like to comment on this article please click here

RETURN TO AIMZINE NEWSLETTER HOME | July 2009

’

Discuss this article

on Aimzine Social