London Stock Exchange: AIM

AIM is one of the equity markets of the London Stock Exchange. It is intended to help smaller, growing businesses - to raise capital for growth and can help raise the profile and visibility of companies with investors, suppliers and customers.

Some businesses consider AIM as a stepping stone to a listing on the London Stock Exchange Main Market, which they may join as the business develops. However, you have no obligation to move from AIM to the Main Market, and it can remain an efficient source of investment and equity finance for your business.

How AIM works

Floating a business on a public market such as AIM allows a company to raise capital in exchange for a stake in its business. These shares are tradeable on a public platform and companies are required to comply with ongoing regulatory obligations to keep investors informed and to attract new investors.

For more information, see considerations when joining AIM and the requirements for joining AIM.

There are a number of benefits of raising equity finance on AIM, including more flexible regulatory requirements, which may make it a more attractive option for smaller, growing companies. However, your business will become answerable to its shareholders and will lose some control over business decisions.

The AIM Rules

The AIM Rules set out the requirements for joining the market as well as the ongoing requirements once on market.

The most fundamental rule requires that a company must appoint a Nominated Adviser ('nomad') before joining AIM and for as long as the company remains listed on the market - see the role of the Nominated Adviser and other advisers.

Nomads are typically corporate finance firms approved by the London Stock Exchange.  The London Stock Exchange provides a Nominated Advisers directory.