The Alternative Investment Market (AIM) of the London Stock Exchange saw a surge in initial public offerings (IPOs) in the third quarter, with 20 companies listing on the junior market, 16 more than in the same period of 2020.
It was the highest number of quarterly IPOs since the fourth quarter of 2014 and the fifth consecutive quarter of growth in AIM listings since new admissions dropped to zero in the second quarter of 2020 due to the Coronavirus (COVID-19) pandemic, according to research by accountancy and business advisory firm BDO.
Peel Hunt Ltd (AIM:PEEL), Big Technologies PLC (AIM:BIG) and LendInvest PLC (AIM:LINV) were among the companies that listed on the junior market in the third quarter.
The newly admitted companies raised £468mln from their IPOs, a surge of 353% compared with last year, while existing companies trading on AIM raised £991.51mln in further issues during the third quarter, a rise of 9%.
“The junior market has bounced back strongly since the pandemic with activity now at the highest level in almost seven years. The Life Sciences and Software Services sectors particularly are continuing to ride a wave of interest, accounting for a large swathe of IPOs recorded this year,” said Chris Searle, corporate finance partner at BDO, said.
“As we emerge from the pandemic, many ambitious companies are still looking to raise capital to help them take advantage of the recovery and accelerate their growth plans. As a result, we anticipate that 2021 will be a very strong year for AIM IPOs.”
The main market of the London Stock Exchange also saw a rise in listing activity, with 13 IPOs in the third quarter compared with just 2 in the same period in 2020.