The AIM market was opened in 1995 by the London Stock Exchange plc (LSE) to provide companies who could not be listed on the Official List of the UK Listing Authority with a means to raise capital and access a public market for securities. AIM is operated and regulated by the LSE.
As of December 2005, 2202 companies were admitted to AIM, with 274 of those companies being non-UK companies, and 1399 of those companies having total market capitalization in excess of 56 billion pounds.
Advantages of listing in AIM include: tax reliefs to investors, tradability of company shares, employee motivation through share options, and increased company visibility.
Unlike other markets, AIM does not require: the public to hold a minimum number of shares, a trading record, minimum market capitalization, or shareholder consent for acquisitions that that do not involve the offering of shares to the public.
An AIM company must appoint and retain a nominated adviser (Nomad). The Nomad judges whether the company is suitable for AIM admission, and provides advice on AIM rules.
Admission to AIM generally takes 3 months. Once admitted to AIM, a company is subject to disclosure obligations relating to its financial conditions, business performance, reverse takeovers, and director dealings.
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