Following a roaring performance in terms of new admissions and
money raised on the AIM market in 2004 the first quarter of 2005
is set to witness a new record in the number of companies admitted
to AIM (130) but also the market's lowest fundraising performance
since the forth quarter of 2003. In the first three months of this
year a total of almost £519m has been raised. The figure
represents a drop in new funds raised of 43% on the previous three
months.
"Whilst total admission numbers may be about to set a new record,
fundraising levels have been below expectations and funds raised
underpinned by a small number of substantial equity issues each in
excess of £20 million", says Philip Secrett, partner within Grant
Thornton's Corporate Finance team. "Following the Exchange's
clampdown on the number of cash shells coming to market through
the introduction of new AIM Rules to come into effect on 1 April,
a large number of cash shells have been squeezed under the wire to
beat the deadline, meaning that over half (53%) of this quarters'
intake of new companies have been shells.