AIM sheds members in August

After seeing an upturn in membership in July, AIM, London's junior stock market, saw more departures than arrivals in August.

According to data from small companies-focused broker Allenby Capital, there were five new entrants to AIM in August and 10 departures.

The five newly listed companies raised a total £18.7m on admission, way down from July's £45.6m. However, secondary placings - where already listed companies raise fresh capital - were strong, with £175.1m raised.

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In total, aggregating primary and secondary fund raising exercises, £1.79bn has been raised so far in 2012 on AIM, down 45.4% on the first eight months of 2011.

So far this year, 50 companies have joined AIM, with 36 of those raising new capital upon joining, Allenby notes. Of those 36, 25 are trading at or above their issue price, and the average return across all 36 is 22.6%.

As at the end of August, 1,110 companies were listed on AIM.

Of the 10 departures, seven were taken over, one took itself private, and two had their listings cancelled before being readmitted.

Allenby Capital's research shows that 37 AIM companies have been taken over this year, with an average bid premium (offer price against closing price the day before the deal was announced) of 48%.

The five companies admitted to AIM in August were: Namakwa Diamonds, Ironveld, Lzye Group, China Chaintek United and Fox Marble Holdings.

JH