Overview of AIM

IPO Costs on AIM

Given any level of gross funds raised, the offering costs for UK companies listing on London's AIM can be predicted with 70% certainty as: Gross Funds Raised x 3.43% + £897,000.

Cost of IPO on London's AIM vs. Gross Funds Raised on London's AIM

Ipo_costs

The variability of the offering costs is directly related to the type of company that is seeking to list via an AIM IPO.  For certain companies, the third-party due diligence is negligible and for others it is extensive and can include reports from technology experts, patent agents and/or reporting geologists.

Category Description Amount
Gross Capital Raised £16,000,000 for the London AIM-listed company and £8,000,000 for selling shareholders* £24,000,000
AIM Nominated Adviser IPO oversight and regulatory obligations 150,000
AIM Nominated Broker Capital raising commission @ 4% (range of 3% - 5%) 960,000
Lawyer Agreements, due diligence, London AIM Admission Document, investor presentation and announcements 250,000
Reporting Accountant Four Reports 150,000
Auditor Audit of financial statements 80,000
Independent Equity Res. Pre-IPO research 60,000
Financial PR/IR Media training, financial and trade press coverage and London AIM regulatory announcements 40,000
Miscellaneous Printing, AIM listing fee and out-of-pocket expenses 30,000
Net Capital Raised London AIM IPO Transaction Costs
Approximate 7.17%
£22,280,000

* Financial investors can typically exit entirely at the time of the AIM IPO and insiders / executive management can typically sell down 20 - 25% of their holdings, all on a case-by-case basis.  A free float of at least 25% is desirable with 50% being ideal so as to increase the chance of achieving strong aftermarket liquidity on London's AIM and the derivation of a ‘fair’ share price / market cap.