AIM’s value sank 30% in the first half of 2022 as the global economic downturn wiped billions off the price of constituent members.
Surging inflation, ever rising interest rates and Russia’s invasion of Ukraine prompted edgy investors to sell – slashing the index’s market value to £105bn from £150bn at the start of January.
The number of companies with a market value over £1bn slumped by a third to 20 and the alternative investment market “saw materially reduced levels of funds raised [in H1],” according to Allenby Capital.
£1.33bn was raised in H1 with new joiners accounting for just 8% of the total - down 70% on the £4.38bn in the comparative period last year.
And there were just 13 new joiners in the six months, against 35 previously, as companies traditionally hold back from listing with a recession looming.
“The IPO market remains quiet as is often the case when share prices are in decline but as we saw after the Covid-impacted Q1 2020, the IPO market can bounce back quickly,” Allenby said in a note.
A total of 30 companies left AIM, meaning the total number fell 17 to 835 at the end of June compared with the start of the year.
On the acquisition front, so far this year 16 AIM companies were either acquired or in a bid process.
The average bid premium compared with the prior day’s close was 46%.