A group of executives and financiers is seeking backing for a bold plan to revitalize the struggling Alternative Investment Market (AIM) by rebranding it as the Global Growth Exchange. The initiative, led by former Boku CEO Jon Prideaux, aims to attract new investors and create a more compelling public market for high-growth companies worldwide.
Proposed Overhaul of AIM
- The plan, currently under discussion with brokers and companies, suggests a spin-off of AIM from the London Stock Exchange (LSEG) to allow external investors to take a stake.
- The new Global Growth Exchange would position itself as a premier destination for companies seeking capital beyond private funding.
- Prideaux emphasized that London has an opportunity to provide an attractive public listing option for global firms that currently rely on private capital.
LSEG’s Response: AIM Is Not for Sale
Despite the ambitious proposal, the London Stock Exchange Group (LSEG) firmly rejected the idea of selling or spinning off AIM.
- “AIM is not for sale,” LSEG stated, reaffirming its role in supporting high-growth businesses in the UK market.
- CEO David Schwimmer has consistently maintained that the exchange business is a “core part” of LSEG’s long-term strategy.
AIM Faces Market Pressure Amid UK Listing Struggles
- AIM and the broader London Stock Exchange have seen a significant drop in listed companies as firms opt for private buyouts or delistings.
- The Financial Conduct Authority (FCA) recently introduced the biggest listing rule overhaul in 30 years to make London more attractive for IPOs.
- UK equity funds recorded £9.6 billion in outflows in 2024, marking the worst performance on record relative to the wider market, according to Calastone.
Investor Calls for a Spin-Off Grow Louder
Some investors believe spinning off LSEG’s exchange business could unlock significant value.
- Stephen Yiu, CEO of equity fund Blue Whale, suggested that a U.S. relisting of LSEG could boost its valuation, bringing it closer to peers like S&P Global.
- Tim Cockroft, chair of Singer Capital Markets, expressed support for greater autonomy for AIM, stating that an independent identity could help the UK small-cap market thrive.
With market uncertainties and regulatory shifts shaping the landscape, the future of AIM remains a pivotal topic within London’s financial ecosystem.
