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.
Integrated Holding Secures $60 Million Credit Facility for Equipment Expansion
Integrated Holding Company KSCC (INTEGRATED) announced that its subsidiary, Integrated Logistics Co Qatar, has secured a $60 million credit facility from NBK Bahrain. The financing will be used to purchase new equipment, reinforcing the company’s commitment to expanding its logistics capabilities.
Japan Faces Record Corporate Bankruptcies Amid Labour Shortages
Japan is on track to see corporate bankruptcies reach an 11-year high in the fiscal year ending March, as severe labour shortages force some firms to shut down, according to a Teikoku Databank survey.
Key Findings:
- Total bankruptcies in fiscal 2024 reached 9,195 so far and could surpass 10,000, the highest since 2013.
- 768 firms went under in February alone, marking the 34th consecutive month of year-on-year increases.
- 308 firms collapsed due to labour shortages, up from 264 the previous year.
Impact of BOJ’s Economic Policies
The Bank of Japan (BOJ) previously pursued aggressive monetary easing to stimulate growth and tighten the job market, lifting wages but also straining smaller businesses.
- Deputy Governor Shinichi Uchida defended the policy, stating that a labour shortage was necessary to break Japan’s deflationary cycle.
- The BOJ ended its decade-long stimulus in 2023 and raised interest rates to 0.5% in January 2024.
Labour Shortages & Wage Pressures
Major corporations are offering record salary hikes to counter inflation and attract talent, but smaller businesses struggle to keep up.
- Japan’s largest labour union is pushing for the biggest wage increases in over 30 years.
- While higher wages boost household income, they also squeeze profit margins for firms without global reach or pricing power.
As Japan navigates these economic shifts, the challenge remains: can small businesses survive rising costs while retaining talent in an increasingly competitive job market?
