Despite this year's volatile markets and ongoing criticism of its regulatory approach, the alternative market continues to be a good place to raise equity. In 2016 - up to 17 August - Aim registered its second-highest fundraising through initial public offerings (IPOs) in eight years at £832m, compared with £488m over the same period last year.
That was spread across 27 deals, slightly up on the 25 floats in the comparable period, according to a report from Dealogic. It also compares favourably with the 13 companies that have listed year-to-date on the main market.
Of the 10 largest new companies to hit Aim in 2016, Blue Prism (PRSM) has performed the most strongly, with its share price almost doubling since it listed in March, rising 95 per cent to 215p, according to Capital IQ data captured as we went to press.
A pioneer in automation, the company places software robots into the office environment to complete routine tasks. This virtual workforce has been employed by a range of blue-chip companies (see Simon Thompson's column 'Robotic growth', 29 Jun 2016).
Mereo BioPharma (MPH) has seen the second-largest increase, with its shares up 13 per cent to 319p. This biotech treats rare diseases and has strong institutional backing in the form of Neil Woodford and his former investment house Invesco Perpetual.
The worst performing of the larger IPOs this year has been Joules (JOUL), the upmarket clothes retailer founded by Tom Joule in 1989. Hitting the market in May, the share price has been weighed down by concern over near-term prospects for the high street and the sell-off for retail stocks after the UK's vote to leave the European Union. Its shares have fallen 15 per cent since listing.
Looking at the 10 biggest companies to float on Aim last year, the best-received new entrants have been gambling company Stride Gaming (STR) and hybrid estate agency Purplebricks (PURP), which have risen by 46 per cent and 43 per cent since their first closing price. Both are benefiting from a trend towards online in their respective sectors: Stride increased its revenue by 84 per cent at the half-year stage, while Purplebricks grew even faster on the back of substantial marketing spend.
But such performances should be balanced against recent corporate disasters on the alternative market triggering an 11-point reform manifesto from investor group ShareSoc. To state the obvious, this will continue to be a market of winners and losers.
