AIM floats hit an eight year high on IPO fever

The volume and value of Initial Public Offerings (IPOs) on London’s junior market increased 134 per cent last year, according to data from global information services company Experian.

There were 75 IPO transactions on London Stock Exchange’s AIM in 2014, worth a total of £2.5bn.

Experian said IPOs on AIM provide an opportunity for smaller companies to seek growth funding, while the increased activity will also encourage business owners looking for an alternative to a sale.

The most active sector was wholesale and retail, contributing 41 per cent to the overall value of transactions.

Yorkshire saw a host of successful AIM floats last year.

Wakefield-based value fashion chain Bonmarche, which saw strong growth in 2014 after floating in the last weeks of 2013, is set for further growth this year as women over 50 flock to Bonmarche’s stylish designs.

The second most active was manufacturing (34 per cent). IPOs included Rotherham-based environmentally friendly washing machine company Xeros, which floated on AIM last March.

The group, a spin-out from Leeds University, makes washing machines that replace most of the water with polymer beads.

The third most active sector was the information and communication sector (24 per cent). Finance and insurance services accounted for 12 per cent of the total transaction value.

Wendy Driver, business development manager at Experian UK&I, said: “The growing number of IPOs on the AIM suggests smaller businesses are increasingly considering listing as an option to secure the funding they need to take their company to the next level.

“Business owners may be curious about what their company could be floated for and should look back at IPOs of companies similar in size and sector in previous years to decide whether it’s an option they wish to explore further.”

The volume and value of IPOs on LSE’s main market also increased last year. The number of IPOs went up by 43 per cent from 40 to 57, while the total value rose to £12bn, up 12 per cent.

This was the highest level of volume and value recorded on London’s main market since 2007.

Large IPOs worth more than £100m dominated the main market, and private equity investors were involved in 20 of the large transactions, accounting for £7bn of the total.

Financial and insurance services was the most active sector on London Stock Exchange last year, raising £5.5bn through 39 deals, followed by the wholesale and retail sector, which completed 32 transactions worth £5.5bn combined, while the information and communication sector completed 27 transactions worth £3.3bn.

A number of Yorkshire firms floated on the main market last year including Leeds-based Clipper Logistics, the firm that distributes goods for blue chip retailers such as Asda, Morrisons, John Lewis and ASOS.

Other main market Yorkshire floats included budget greetings card retailer Card Factory, manufacturer Polypipe Group and software specialist Servelec.