Consensus that AIM should introduce a free float requirement
PwC have produced a report (“Thriving on AIM”) giving a snapshot of current sentiment on the AIM market. Perhaps the five most interesting findings of the PwC report, which surveyed 96 AIM companies, are:
1. That 70% describe achieving “aggressive growth” as their main corporate priority over the next 12 months, with only 10% citing cost control.
2. That AIM companies’ focus for growth remains on the U.S. and Europe, despite the economic problems in those areas.
3. The top five challenges identified by AIM companies, which are:
- managing investor relations
- managing news flow
- implementing adequate staff reward structures
- implementing changes to corporate governance, and
- establishing KPIs to track performance.
4. The consensus amongst those surveyed that AIM should introduce a minimum free float requirement.
5. The low importance attached by AIM companies to issues of governance and transparency, in contrast to the expectations of institutional investors.
The PwC report also contains sections on “six steps to making AIM work” for new entrants and on actions that participants in the AIM market (not just AIM companies, but also the London Stock Exchange and Nomads) should take to create the right environment for investment and growth.
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