Acceleration in companies graduating from AIM to LSE’s Main Market

Six companies transferred from AIM in the last 12 months, versus two the year before, a noticeable increase.

The increase reflects a combination of recent regulatory changes that have reduced the cost and complexity of a Main Market listing, alongside a growing recognition among AIM companies that moving to the Main Market is now a far more accessible step.

Young’s the brewery has recently announced it will move from AIM to the Main Market and other recent examples include Brooks Macdonald, which moved to the Main Market after 10 years on AIM. The company said the move was intended to enhance its corporate profile and attract a broader investor base.

Nicholas Holmes, partner at Pinsent Masons and head of the firm’s equity capital markets practice, said: “The increase in transfers is an early vindication of the FCA’s recent listing reforms and shows that companies are beginning to respond. We expect the trend to continue.”

He added: “The Main Market has always carried greater prestige. What has changed is that recent reforms have reduced some of the regulatory burdens associated with listing, making a move from AIM a more straightforward exercise for many companies.

“The regulatory gap between listing on AIM or the Main Market has narrowed, which is inevitably influencing how companies assess their listing options.

“With AIM reviewing its rules, the market will be watching closely to see whether those changes can attract and retain more businesses on AIM.