AIM-pocalypse: Number of £1bn firms on junior market falls to nine-year low

London: The AIM market is really struggling right now. It’s hit a record low in 2024, with just six companies valued over £1 billion. That’s the fewest we’ve seen in nine years.

Since early 2022, the number of these high-value firms has plummeted by 80%. It’s almost half of what it was just last year. The London Stock Exchange shared this data, and it’s pretty alarming.

At the start of 2022, there were 30 companies worth over £1 billion. Now, seven have been taken over, three moved to the main market, and the rest just dropped below that £1 billion mark.

One of the remaining firms, Gamma Communications, is planning to shift to the main market soon. If that happens, we’ll be down to just five big players on AIM.

Dan Coatsworth, an investment analyst at AJ Bell, pointed out that the last time AIM had fewer than six stocks over £1 billion was back in 2015. Back then, there were only four: ASOS, Abcam, New Europe Property Investments, and Hutchison China.

The total number of companies on AIM is also at its lowest in 23 years, with only 688 firms listed now. That’s a big drop from nearly 1,700 back in 2007.

It’s not just the exits that are causing this decline; there’s also a lack of IPOs. In fact, 2024 has seen the second-lowest number of IPOs in AIM’s history.

Coatsworth believes AIM needs a serious reboot to stay relevant. He suggests that the London Stock Exchange, FCA, and the government should think about offering more incentives for companies to list on AIM and attract a wider range of investors.