Move over tech and consumer products, it’s the age of natural resources stocks on London’s junior market, AIM.
Analysis of the market capitalisations of companies listed on AIM reveals that oil & gas companies comprised 6.3% of the total value of AIM at the end of April, up from 3.9% at the end of 2021, while mining companies represented 7.5% of the market, up from 5.8%.
The number of companies on AIM decreased to 842 by the end of April 2022 after starting the year with 852 constituents, analysis by Allenby Capital showed, reversing an upward trend that had been in effect since 2020.
Of the 11 new admissions to AIM in 2022, the average (mean) market capitalisation at the time of listing was £79.0mln while the median valuation was £37.8mln.
On average, newly listed companies raised £9.1mln (median: £8.0mln) upon admission to AIM in 2022 and once again, energy companies were to the fore, with the Alternative Energy Sector accounting for just under a third of the capital raised.
The flotation of Clean Power Hydrogen PLC (AIM:CPH2) in February raised £30.5mln and is the largest primary fundraise of the year thus far.
Three of the 11 new admissions came from the Industrial Metals & Mining sector: Neometals Ltd (ASX:NMT, OTC:RDRUY, AIM:NMT), Artemis Resources and Anglesey Mining PLC (AIM:AYM), with the latter moving over from the main market to AIM.