The record SpaceX flotation on the Nasdaq has pulled an estimated £270 million of British retail money across the Atlantic, and London's junior market has felt the drain.
While the AIM All-Share Index has dropped around 2.4% since the world's largest IPO, the underlying numbers look even more stark.
Traded volume appears to have dropped around 13-14% since the 12 June listing, compared with the same stretch last year.
Musk's rocket and satellite company priced the largest IPO in history and reserved an unusually large slice of shares for ordinary investors.
The pain appears to have landed hardest on companies worth between £50 million and £200 million, where thin trading can freeze prices and leave buyers and sellers struggling to agree a level.
Rather than sparking fresh interest in London, easier access to global markets has simply handed investors somewhere else to put their money.
Over the past week the trend has continued, with the AIM All-Share down 0.6% on thin volume. By contrast, the FTSE 100, buoyed by a welter of positive trading updates, galloped 2.3% higher.
The dreaded double-D strikes again
Shares in CAP-XX (AIM:CPX) slumped 43% this week as the supercapacitor maker raised £2.2 million through a placing and subscription.
The hit came down to the classic double-D: discount and dilution. The hope is that short-term pain will be mitigated by longer-term gain. Most of the money will fund upgrades and expansion of CAP-XX (AIM:CPX)'s production lines, alongside customer acquisition, distributor growth and general working capital.
Shield Therapeutics: Scratch the surface
Shield Therapeutics PLC (AIM:STX, OTCQB:SHIEF) dropped 34% after what on the face of it looked like a decent trading update. But here's the thing that spooked investors: while the half-year numbers looked great, they were propped up by a one-off $7.9 million payment from Shield's Chinese partner. Strip that out, and the picture changes.
Quarterly sales actually fell, the price of its main drug dropped after New York tightened Medicaid rules, and investors will have half an eye on the cash position, which has dropped around $4 million in three months.
AB Dynamics slid 30% this week after the vehicle-testing specialist warned that jittery customers are dragging out orders. The trigger is trouble at Europe's carmakers, where restructuring and Middle East logistics snags are delaying decisions and squeezing testing product and simulation sales. The firm now expects lower revenue, is quitting a loss-making China unit, and blamed a tougher second half.
When the boss backs himself
Sunda Energy PLC (AIM:SNDA, FRA:GHA0) jumped 44% after a show of confidence from the top. Chief executive Andy Butler has bought up the last £400,000 of convertible loan notes tied to the company's New Zealand acquisition, taking them off the lender's hands. Tellingly, he says he has no plans to convert them into shares. Investors read that as the boss putting his own money where his mouth is, right as the deal heads towards completion.
Cyber fears give Shearwater a boost
Shearwater Group PLC (AIM:SWG) shares jumped 31% after the cybersecurity firm said revenue and profits would land ahead of City forecasts. A strong second half, driven by its services arm and a run of contract wins, should lift full-year revenue to around £42 million. The timing helps. Cyber fears are running hot after OpenAI and Anthropic both admitted their newest models gained unauthorised access to outside organisations' systems during testing, escaping the controlled environments they were meant to stay inside. With demand for cyber defences only climbing, and the board clearing the way to buy back shares or pay a dividend, investors piled in.
Getech catches a Spanish eye
Getech Group PLC (AIM:GTC) leapt 30% this week after a Spanish buyer swooped in. Xcalibur Multiphysics, a Madrid-based world leader in airborne surveys that map the earth for oil, minerals and water, has snapped up a 25.5% stake in the geoscience data specialist. Getech uses geological data to help hunt for natural resources and greener energy sources like hydrogen, so the two are a natural fit. Investors clearly smell a possible takeover.
Itaconix: The slow burner catches fire
And finally, Itaconix PLC (AIM:ITX, OTCQB:ITXXF, FRA:18G0) shares kept climbing this week, extending a run that has now lifted them 60% since the start of the month. The catalyst was an upbeat trading update on July 17 that initially appears to have been a slow burner for the market.
First-half sales leapt 72% to a record $8.3 million, prompting the company to lift full-year guidance to at least $14.8 million, ahead of the $13.3 million analysts had pencilled in.
Growth came from repeat detergent orders and new customers in Europe and North America. Investors are warming to a story that is finally gaining commercial traction.
