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Number of IPOs on AIM soars, BDO finds

This is the fifth consecutive quarter of growth in the number of IPOs on AIM since the initial shock of the pandemic caused new admissions to fall to zero in Q2 of 2020

The number of Initial Public Offerings (IPOs) on the junior market jumped to 20 in the third quarter of 2021, 16 more than in the same period last year, and the highest quarterly number since Q4 of 2014, research by accountancy and business advisory firm BDO has found.

This is the fifth consecutive quarter of growth in the number of IPOs on AIM since the initial shock of the pandemic caused new admissions to fall to zero in Q2 of 2020.

In Q3 of 2021, the newly admitted companies raised £468m in new money, an increase of 353% compared to the same period last year.

Meanwhile existing AIM companies raised £991.51m in further issues during the third quarter, a rise of 9% versus the same period last year.

July was the busiest month of quarter three, with 15 companies listing on AIM for the first time.

Among the companies joining AIM in quarter three were Peel Hunt Limited, Big Technologies plc and LendInvest plc.

The UK Main Market also experienced a rise in listing activity, with 13 IPOs in Q3 versus just two IPOs in the same period in 2020.

Chris Searle, corporate finance partner at BDO, said: “The junior market has bounced back strongly since the pandemic with activity now at the highest level in almost seven years. The Life Sciences and Software Services sectors particularly are continuing to ride a wave of interest, accounting for a large swath of IPOs recorded this year.

“As we emerge from the pandemic, many ambitious companies are still looking to raise capital to help them take advantage of the recovery and accelerate their growth plans. As a result, we anticipate that 2021 will be a very strong year for AIM IPOs.”

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