Tech capital markets: AIM high

In 2013, the technology sector experienced solid growth in the UK.  According to UK Trade & Investment , the technology sector accounted for 27% of London’s jobs growth and tech start-ups grew by 76% in the same year. 

Whilst it was a relatively quiet year for the Main Market, with 30 new IPOs in total, with only one company in the technology sector, Servelec Group plc that raised £122 million. By contrast the AIM Market had a very good run for the sector in 2013 and   attracted 20 tech companies, raising a total of  £135 million. These figures represent 19.8% of all newly admitted AIM companies and 11.4% of all new money raised on AIM in 2013.

If we “flex” these statistics by including the funds raised by Tungsten Corporation plc used to acquire a tech-related company, OB10 Limited, then the total new money raised for the tech sector would equate to around 18% of all new money raised on AIM in 2013.  OB10 operates a B2B e-invoicing network and Tungsten is an investment fund focusing on acquiring financial services businesses.  In 2013, Tungsten raised £160 million of which £73 million was used to fund the acquisition of OB10. 

The sparkling performance of the technology sector on AIM reflects its  principal characteristic, which is to attract younger companies which demonstrate high growth potential.  The junior board, is of course also designed , in regulatory terms,  for young and growth companies.

Whether AIM will repeat such inspiring results for the sector in 2014 remains to be seen.  Moore Stephens London is currently assisting two technology companies to float on AIM, both of which are planned for an admission this year.

For more information contact Andrew Cook.

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Andrew Cook
Mark Ayres

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