Four companies joined the Alternative Investment Market (AIM) in February, but that was not enough to counteract the 11 departures from London's junior market, notes Allenby Capital, an AIM nominated adviser (Nomad) and broker.
There were 11 companies that delisted from AIM in February, with one going into administration and three returning to private status. The other seven disappeared as a result of being taken over, bringing to 17 the number of AIM companied snaffled up in the first two months of the year.
According to Allenby Capital, the average premium paid in takeovers has been 52% over the pre-announcement share price.
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"Of the 28 companies that have left AIM in 2012 to date, 17 have left by way of being acquired. With deals taking on average three months to complete, the February departures are largely the result of bids launched in the depth of the market despair at the end of 2011," Allenby Capital notes.
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The broker expects private equity, management and trade buyers to continue to snap up opportunities in 2012.
The 17 companies taken over have been: Parseq, Coolabi, Mobile Doctors, Clarity Commerce, GTL Resources, THB, DM, Encore Oil, Hamworthy, Landkom, Workplace Systems, Dominion Petroleum, Jacques Vert, Merchant Seurities, DHIR India, European Goldfields and Patsystems.
By the end of February, the number of AIM-listed companies stood at 1,122.
New entrants divided equally between international and UK companies, and all raised fresh capital on admission to AIM.
The new admissions in February were:
Belvoir Lettings, a UK based lettings company with a franchise business model. it raised £3.0m of fresh capital.
Lead All investments, an investment vehicle operating in the Cayman Islands and Malaysia. It too raised £3m in new capital.
Sports Stars Media, a UK company that has Portuguee subsidiaries, which have been established to produce and exploit sports-based animation series, including one on former Chelsea manager Jose Mourinho. Sports Stars raised £1.6m in new capital.
Tangiers Petroleum is an exploration and production company, also listed in Australia, which has oil and gas assets down under and in Morocco. It raised £4.21m through its flotation.
"Given the poor market conditions at the end of 2011, we believe many potential IPO [flotation] candidates have put the process on hold and hence the slow start to 2012 is not surprising," Allenby Capital opined. The broker reckons that with markets picking up, this could spark a renewal in flotation activity.
Liquidity improved in the month with the average AIM stock trading 4.2% of its market capitalisation in February.
Meanwhile, AIM Journal magazine (https://tinyurl.com/88cs7b8) reports that Australian Stock Exchange-listed Rialto Energy is planning an additional quotation on AIM.
Rialto has an 85% participating interest in Block CI-202 in Cte d'Ivoire and it plans to drill three wells this year with a view to commencing production in 2013.
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