AIM records highest Q1 IPOs in seven years

The number of Initial Public Offerings (IPOs) on the junior market jumped to 10 in the first quarter of 2021, seven more than in the same period last year, and the highest Q1 number since 2014, research by accountancy and business advisory firm BDO has found.

This is the third consecutive quarter of growth in the number of IPOs on AIM since the initial shock of the pandemic caused new admissions to fall to zero in quarter two of 2020. It also represents the highest quarterly figure since quarter two of 2018 when there were 19 new companies admitted to the junior market.

In quarter one of 2021, the newly admitted companies raised £105m in new money, a rise of 114% compared to the same period last year. 

Meanwhile existing AIM companies raised over £1.5bn in further issues during the first quarter, a rise of 86% versus the first quarter of 2020.

March was the busiest month of quarter one, with seven companies listing on AIM for the first time, including Tinybuild Inc, Virgin Wines UK plc, Amte Power plc and In The Style Group plc.

Commenting on the recent rise in IPOs, Chris Searle, Corporate Finance Partner at BDO said: 

“This has been the busiest start to the year in seven years, and with a strong pipeline of companies expressing an interest in listing on AIM, we anticipate that this will be a strong year for IPOs.

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“After a hiatus in quarter two last year when the economic shock of the pandemic first hit, interest in listing on AIM has continued to grow. 

“The junior market has been remarkably resilient during what has been a volatile period on the public markets. Investors have backed companies through the downturn and we are now seeing ambitious companies raising capital to help them take advantage of the recovery and accelerate their growth plans.”

The rise in AIM IPOs was mirrored by an increase in listing activity on the UK main market where there were 13 IPOs in quarter one, raising £1.252bn compared to the same period last year when five companies listed on the UK main market, raising £407m.

BDO audits more AIM listed companies than any other firm and has also been the leading reporting accountant for AIM IPOs in nine of the last 10 years.

ENDS

Notes to editors

Accountancy and business advisory firm BDO LLP provides integrated advice and solutions to help businesses navigate a changing world. 

Our clients are Britain’s economic engine – ambitious, entrepreneurially-spirited and high-growth businesses that fuel the economy.  

We share our clients’ ambitions and their entrepreneurial mind-set. We have the right combination of global reach, integrity and expertise to help them succeed.  

BDO LLP
BDO LLP operates in 18 offices across the UK, employing 6,000 people offering tax, audit and assurance, and a range of advisory services. BDO LLP is the UK member firm of the BDO international network.

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The BDO global network provides business advisory services in 167 countries, with 91,000 people working out of 1,658 offices worldwide. It has revenues of $10.3bn.  

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