RE: Some recent misconceptions corrected22 Nov 2024 14:51
AIM stocks worth £40bn make it to FTSE 100 and FTSE 250
There’s a lot of talk about AIM not developing enough technology companies, but Andrew Hore points out that it’s been more successful at producing the large caps of tomorrow than you might think.
25th October 2024 15:01
Andrew Hore from interactive investor
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Golden paws casting a shadow of a crown
There's been a lot of discussion about the failure of the UK stock market to finance the building up of large, world-class technology companies, including in the recent Tony Blair Institute paper. AIM is singled out as failing to provide the platform for these growth businesses.
Technology companies have generated investment by coming to AIM, but some have been taken over by private equity investors or larger technology companies. Others, of course, have run out of money, but there are always going to be technology companies that fall by the wayside because they are by their nature risky.
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Some pharma and technology companies, such as the first UK-quoted cannabis-based medicines developer GW Pharma, have moved from AIM to US listings rather than the Main Market. That is not AIM’s fault, because it gave them a start.
AIM has never been a market predominantly for technology companies. It has always been a more general market, and it has evolved over time. It is silly to expect it to be the Nasdaq, which has a much greater pool of informed technology investors. The successes of AIM are not always immediately apparent and can be missed.
One of the reasons for launching AIM was to provide an initial market for companies before moving on to the Main Market. Many companies have moved the other way because of the tax incentives and less-stringent red ta