Raising corporate finance through the Alternative Investment Market

Among the ways businesses can access corporate finance for development is through the London Stock Exchange's international market for smaller growing companies, the Alternative Investment Market, known as AIM.

Since it was set up in 1995, AIM has become increasingly popular for both fledgling companies seeking venture capital and more established businesses needing capital for growth. In its first 15 years, almost £24billion has been raised for more than 2,200 companies.

One of the attractions of an alternative market listing as a means of raising commercial funds is its flexibility, with less regulation and no requirements for capitalisation or number of shares issued, compared with listing on the main market. It is possible for businesses to move between the two markets.

Once management of a company has decided to seek a quotation on AIM, it will need to consult experienced corporate law solicitors and to appoint other advisers, usually including a broker, accountants, public relations and investor relations representatives. The most important of these is a Nominated Adviser or Nomad firm, which will be a corporate financial adviser, approved by the London Stock Exchange.

A Nomad firm is responsible for advising and guiding a company on the criteria for admission to AIM and has continuing duties once it has achieved a placing.

Its roles include:

  • undertaking extensive due diligence to ensurea company is suitable for AIM
  • providing guidance throughout the flotation process
  • preparing the company for being on a public market
  • helping preparetheAIM admission document
  • confirming appropriateness of the company to the Exchange
  • acting as the primary regulator throughouta company'stime on AIM.

Every AIM company must also retain an approved broker which will be a securities house and member of the London Stock Exchange. Often a Nomad firm will also have a broker team and it is possible for a company to appoint it for both roles but safeguards will be needed to avoid a potential conflict of interest between the advisers.

Extensive corporate legal skills at JMW Solicitors

Working alongside your banks, financial advisers and corporate brokers, the experienced corporate lawyers of JMW Solicitors will ensure that your company's Alternative Investment Market listing is progressed efficiently and effectively. The Corporate team at JMW is further able to draw upon the combined skills of the firm's partners in other fields such as Employment Law, Intellectual Property Law and Commercial Property Law in order to provide businesses with a broad range of comprehensive, commercially practical, added-value legal advice.

For further information, please contact us on 0345 872 6666 or use our enquiry form - we will respond promptly.

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