The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) designed for smaller, growing, and riskier companies to raise capital through public equity.
Launched in 1995, AIM offers a more flexible regulatory environment compared to the main market.
The Alternative Investment Market (AIM) is a sub-market of the London Stock Exchange (LSE) designed for smaller, growing, and riskier companies to raise capital through public equity. Launched in 1995, AIM offers a more flexible regulatory environment compared to the main market.
AIM was created to:
Provide access to capital for early-stage or high-growth companies
Encourage entrepreneurship and innovation
Offer investors exposure to smaller businesses with higher growth potential
Less stringent listing requirements than LSE’s main market
Companies are not required to have a trading history or minimum market capitalization
Every listed company must appoint a Nominated Adviser (NOMAD) who guides them through compliance
Attracts both domestic and international companies
Serves as a launchpad for startups to become public companies
Encourages investment in innovation-driven sectors like tech, biotech, and cleantech
Offers investors a chance to diversify into emerging businesses
Lower costs and simpler process to go public
Encourages global participation
Potential for high returns in successful cases
Ongoing access to secondary fundraising
Higher volatility and risk due to smaller company size
Lower liquidity compared to main market stocks
Greater chance of business failure or underperformance