AIM turns thirty: Junior market is all grown up
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Fast fashion retailer Asos, upmarket tonic water maker Fever-Tree, budget airline Jet2 and pizza franchise Domino's might sound like an unrelated handful of household names – but they have one thing in common. They all started their lives as listed firms on London's junior AIM stock market, which turns 30 this year.
The Alternative Investment Market was launched in June 1995 to give small and medium size growth companies access to capital. Since then, it has admitted more than 4,000 firms, raising more than £135 billion in total. According to the latest statistics, AIM-listed companies contributed £68 billion to the British economy and supported 770,000 jobs in 2023.
Over the past four years the direct economic contribution made by AIM firms has grown by 6.6 per cent, according to analysis by accountant Grant Thornton. But as AIM enters its 30th year, it is facing an existential threat. High flyiers: Jet2, Domino's Pizza and Asos are success stories.
Experts have warned that the market is shrinking with one in three AIM-listed companies vulnerable to a takeover. Loungers, the owner of casual dining chain Cosy Club, in November agreed to be bought by an American private equity firm for £338 million.
And just last week, retailer Quiz said it was going private, saying AIM 'is not likely to provide significant additional or more cost effective options for funding' than can be achieved privately. That came after a string of high profile exits in the preceding years.
