Allenby says AIM market saw a ‘strong finish’ to 2021
According to data published by the UK-based adviser and broker Allenby Capital, 2021 was the strongest year since 2007 for London’s junior AIM market with regards to funds raised.
In total, nearly £10 billion was raised on AIM in 2021 while further Issues (that’s already listed companies completing follow-on fund raises) showed a 17.5% increase from 2020 to £6.2bn.
Analysts say it was the New Issues market (new joiners to AIM raising funds) which made a difference compared to previous years with £3.7bn raised in 2021, a 432% increase on 2021.
The investment bank explained that this money was raised by the 87 new joiners to the AIM market over the course of 2021, equating to an average raise on joining the market of £42m.
Despite the recent tech led sell off in global markets AIM’s 2021 IPOs have held up relatively well, with the average performance for the 2021 IPOs through to 4 February 2022 up 21%.
Allenby highlighted the best performers within the UK biotech area as the company 4basebio which is up 430% since listing as well as the US coal miner Bens Creek which is up 320%.
‘At the other end of the scale the worst performers are the Oil & Gas exploration firm Advance Energy down 89% and home delivery food company Parsley Box, down 85%,’ it reported.
Allenby concluded that the average market capitalization of AIM companies has continued to rise with larger companies joining, micro companies delisting and general rising share prices.
At the end of December 2021 the average market capitalisation of AIM’s 852 constituents was £176m (that’s a median of £48m). 30 AIM companies are now worth more than £1bn, it noted.
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