AIM Market Updates

Date

Update

23/12/13

AIM Market Update – November 2013

• Highest monthly raise since March 2011
• £3.3bn raised on AIM year to date, +26.2% on the same period in 2012
• December numbers should also prove healthy given the six IPOs completed to date raising a total £153m, and a further four IPOs to come before year end

• 10 IPOs, 1 Reverse Takeover, 1 transfer from Main Market
• 9 from the UK, 1 from Ireland, 1 from Sweden and 1 from China
• 2 of the joiners were Private Equity exits
• Avanti Capital Plc and Sun European Partners LLP sold down their stakes in Eclectic Bars and Bonmarche upon their admissions to AIM, respectively.
• Average return from 2013 AIM IPOs = +47%
• November’s 12 new joiners offset by 9 departures (3 acquired, 2 chose to delist, 1 subject of a reverse takeover, 1 returned cash to shareholders, 1 transferred its listing to another market, 1 fell into administration)

• Highest average liquidity (in terms of value of stock traded as a percentage of market cap) amongst AIM’s constituents since March 2012 – at 4.0%.
• Average mkt cap of AIM stocks now £67m, highest since May 2011

28/11/13

AIM Market Update – October 2013

• Second highest month of the year
• Well above the 2013 monthly average of £264m
• £2.65bn raised on AIM year to date, +16% on the same period in 2012
• October included Tungsten Corporation’s £160m IPO
• November numbers should also be good given the 7 IPOs completed to date and Quindell’s £200m secondary fundraise

• 3 IPOs and 4 Reverse Takeovers
• 6 from the UK and 1 from China
• Average return from 2013 AIM IPOs = +47%
• October’s 7 new joiners offset by 9 departures (3 acquired, 4 subject of reverse takeovers, 1 chose to delist and 1 returned cash to shareholders)

• Highest monthly value of trading on AIM in 2013 and highest since July 2012
• Average mkt cap of AIM stocks now £66m, highest since May 2011

30/10/13

AIM Market Update – September 2013

• Below the 2013 monthly average of £248m
• £2.24bn raised on AIM year to date, +11% on the same period in 2012
• October looks like it will be a stronger month for AIM due to deals already announced such as Tungsten Corporation’s £160m IPO announced on Oct 16th.

• 5 did so by way of an IPO, 3 were companies joining from the Main market, 1 was a move from ISDX to AIM, 2 were by way of an introduction to AIM (IPO with no fundraise) and 3 did so by way of a Reverse Takeover.
• Partly offset by 6 departures (2 acquired, 4 subject of reverse takeovers)
• 8 of the 14 new joiners raised funds on listing
• Average share price performance since IPO of the 8 = +61%
• Average return across all new entrants to AIM in 2013 that raised money on listing = +46%

• +36% increase on August and +17% on September 2012
• September saw the highest monthly value of trading on AIM in 2013
• Potentially a sign that the change to ISA eligibility rules are having a positive impact

27/09/13

AIM Market Update – August 2013

• Down from the £473m raised in July 2013 and lower than the £161m and £194m raised in August 2011 and August 2012 respectively
• £2.1bn raised on AIM year to date, +17% on the same period in 2012

• 4 from the UK, 1 from Malaysia
• 4 raised funds on joining (average raise £5.4m)
• Average share price performance since IPO of the four = +51%
• Average return across all new entrants to AIM in 2013 that raised money on listing = +36%

• 1 acquired, 1 chose to delist, 1 ceased trading and returned cash to shareholders, 1 entered administration, 2 did RTOs
• Number of companies on AIM decreased by one to 1,085

• 8.7% increase on July
• Potentially a sign that the change to ISA eligibility rules are having a positive impact

23/08/13

AIM Market Update – July 2013

• Highest total since June 2011
• £1.96bn raised on AIM year to date, +23% on the same period in 2012

• 7 from the UK, 8 international
• 48 new joiners so far in 2013
• 36 have raised funds on admission, average return for investors of +23.4%
• 14 departures (2 acquired, 1 privatised, 4 chose to delist, 2 returned cash to shareholders, 2 did RTOs, 2 were suspended and 1 fell in to administration)
• Number of companies on AIM increased by one to 1,086

24/07/13

AIM Market Update – June 2013

• Down from the £351m raised in May 2013 but +38% on June 2012
• £1.48bn raised on AIM year to date, +1.8% on the same period in 2012

• Five IPOs and one move from the Main market
• Three from the UK, three international (US, Myanmar, Sub-Saharan Africa)
• Offset by eight departures (1 acquired, 1 privatised, 2 chose to delist, 2 returned cash to shareholders and 2 fell in to administration)

• Total trading on AIM amounted to £3.4bn in June 2013, +36% on May 2013 and +44% on June 2012
• Changing rules to allow AIM stocks into tax free ISA wrappers by the Autumn should help continue this trend
• As some of AIMs strugglers leave the market (and helped by rising share prices) the average market cap continues to rise
• June average of £57m from the lows of £37m at end 2008

24/06/13

AIM Market Update – May 2013

• Largest monthly amount so far in 2013, largest monthly amount since March 2012
• £1.26bn raised on AIM year to date, essentially in line with the same period in 2012

• Six new companies joined the market in May
• Three from the UK, three international
• Sectors – 2 Financials, 2 Technology, 1 Industrial and 1 Natural resources

• Six new joiners were offset by seven companies that left the exchange
• 2 were acquired
• 2 chose to delist after no longer seeing the benefits of a listing
• 1 transferred its listing to the Specialist Fund Market
• 2 fell into administration

24/05/13

AIM Market Update – April 2013

• Largest monthly amount so far in 2013
• +22% on prior month and +21% on April 2012

• Six new companies joined the market in April
• Five of the companies were from the UK and just one was based internationally (US)
• Three of the new joiners had a healthcare focus

• Six new joiners were offset by ten companies that left the exchange
• 2 were acquired
• 6 chose to delist after no longer seeing the benefits of a listing
• 1 was privatised by a majority shareholder
• 1 fell into administration

22/04/13

AIM Market Update – March 2013

• £214m was raised in total during the month (IPOs and Secondary fundraises)
• £214m is 7% below the February 2013 figure and a painful 42% below the March 2012 total
• At £597m (£126m New, £470m Secondary), the total raised on AIM in Q1 2013 is 29% below the total raised in Q1 2012
• To put this into perspective, 2012 was the worst year on AIM for total funds raised since 2004

• As with 2012 Natural Resources continues to dominate the funds being raised on AIM
• However, 20% of funds raised in secondary issues in 2013 have gone into technology stocks against just 10% in 2013

• Six new joiners were offset by eight departures
• Of the six new joiners, two have their main operations in the UK, with the others based in Kazakhstan, the Ivory Coast, Malaysia and Hungary
• At the end of the month there were 1,092 companies on AIM, against c.1,700 in 2007

22/03/13

AIM Market Update – February 2013

• The AIM index ended February at 741, a monthly rise of 1.1% and follows a rise in January of 3.7%

• £231m was raised in total during the month (IPOs and Secondary fundraises)
• The £231m is 51% above the January 2013 figure but 22% below the February 2012 total
• 2013 is currently running 20% below the total raised in the first two months of 2012

• Four new joiners were offset by six departures
• M&A activity was behind three of the departures in the month with one company being acquired and two companies being subject to reverse takeovers
• All four of the new joiners have their main operating assets located outside of the UK

08/03/13

Dividends on AIM – March 2013

• 250 of AIM’s 1,100 constituents are forecast to pay a dividend in 2013
• We analyse the 50 highest dividend yielding stocks on AIM, each of which have a forecast dividend yield of over 4.2%

• AIM and the FTSE100 returned 2.0% and 5.8% respectively in 2012 – the return on the Top 50 was 12.2%, increasing to 18.3% had the dividends been reinvested
• An increased appetite for risk may reverse this trend in 2013
• However, we expect markets to maintain a degree of risk aversion and hence expect further outperformance from this portfolio of high dividend payers

• These 12 companies not only pay a high dividend but we believe also offer upside share price potential

25/02/13

AIM Market Update – January 2013

• 2 companies left AIM in January through M&A activity
  • One was acquired and one merged with another AIM listed company
  • Approaches made to 3 other AIM listed companies in the last 2 weeks: London Capital Group (LCG.L), Ffastfill Plc (FFA.L) and I-Design Group Plc (IDG.L)
  • Mirrors pick up in activity on major indices – Virgin Media (VMED.L), DELL (DELL:NDQ) and HJ Heinz Co (HNZ:NYSE)

• 5 joiners being offset by 5 departures

• Figure is down 16% on January 2012
• The biggest fundraisings in the month were in the Chemicals, Oil & Gas and Technology sectors
• The biggest raise was the £30.6m raised by Oxford Catalysts Group (OCG.L) the developer and designer of technology for the production of synthetic oil from waste gas

• Best performers since their IPOs are West Africa Minerals (Mining) +435% and Wandisco (Technology) + 346%

25/01/13

AIM Market Update – December 2012

• Overall weak year but healthy Q4 fundraising figures
  • At just under £3bn, the total amount (new money plus secondary issues) raised on AIM in 2012 was the lowest since 2003 and 32% below the 2011 result.
  • However, the year on year figure had been running at close to minus 50% for most of the year until a strong final quarter of 2012
  • Q4 produced the largest IPO of the year (£200m IPO of investment company Sherborne Investors (Guernsey) N Ltd) and also the largest secondary fundraise (£100m raise by Mobile Telecommunications firm Monitise Plc)
  • In total, £905m was raised in Q4, an increase of 18% on Q4 2011.

• 73 new entrants to the market were offset by 120 departures
• Of the 73 new joiners, 51 raised new funds at the point of joining with an average raise of £13.8m
• The average 2012 AIM IPO was up +23% by year end
• 45 companies departed AIM in 2012 by being acquired at an average bid premium of 49.8%

• Natural Resources dominated and accounted for 48% of the funds raised
• However, the three largest raises were in the Mobile Telecommunications or Media sectors

28/11/12

AIM Market Update – November 2012

• £253m was raised in total, the highest monthly amount since March
  • The vast majority was through secondary issues where £248m was raised across 56 different transactions, £65m more than the monthly average so far this year
  • Despite the strong monthly performance, the YTD total of funds raised (new and secondary issues) of £2.27bn is down 37.4% on the same period through October 2011

• 5 new entrants in the month offset by the 10 departures
• The total number of companies on AIM decreased to 1,102 by the end of October
• 62 companies have joined AIM so far in 2012 and 41 of those raised new funds at the point of joining. Of those 41, 24 are trading above their issue price and the average return, across all 41, is +28%

• AIM stocks on average traded 3.2% of their Mkt Cap in October
• 32 stocks did not trade at all in the month
• The most traded stocks on AIM continue to be those that are Natural Resource focused

22/10/12

AIM Market Update – October 2012

• The highlight of September was the IPO of Eland Oil & Gas, the Nigerian oil and gas play, which by raising £118m was the largest AIM IPO in terms of funds raised since December 2009
  • The markets 7 new entrants in September raised a total of £168m on admission – a vast increase on the £18.7m of new money raised in August
  • Secondary placings of £59.2m in the month were however well behind the 2012 monthly average of £175m
  • The September total (new and secondaries) of £227m was up 2.9% on September 2011 but the YTD total of £2.01bn is down 42.3% on the same period through September 2011

• M&A activity was fairly low with only 1 of the 10 departures being due to an acquisition
• The total number of companies on AIM decreased to 1,106 by the end of September

• Trading activity picked up on September 10th when the company announced the preliminary logging results from a well in Namibia
• The report indicated that no commercial hydrocarbons were found and that the well will be plugged and abandoned
• The stock fell over 60% in the following days amidst heavy trading

27/09/12

AIM Market Update – September 2012

• After a positive July when the number of companies increased (albeit by just one), the downtrend continued in August with a net decrease in AIM companies by 5
  • 5 companies joined the market in August/offset by 10 departures
  • The market’s 5 new entrants raised a total of £18.7m on admission
  • The total number of companies on AIM fell to 1,110 by the end of August

• The August total was up 20% on August 2011 but the YTD total of £1.79bn is still down over 45% on the same period through August 2011

• 37 companies have now left AIM in 2012 through being acquired
• The bid premium (offer price against closing price on day prior to the deal being announced) has so far, in 2012, averaged 48%

28/08/12

AIM Market Update – August 2012

• For the first time since August 2011 the number of companies on AIM increased during the month (albeit by just one)
  • 11 companies joined the market in July/offset by 10 departures
  • The market’s 11 new entrants raised a total of £45.6m on admission
  • The total number of companies on AIM rose to 1,115 by the end of July

• The July total was down 54% on July 2011 and the YTD total of £1.6bn is down 49% on the same period through July 2011

• Of those 31, 22 are trading above their issue price and the average return (across all 31) is +29% YTD

20/07/12

AIM Market Update – July 2012

• Just £163m was raised in the month – below the previous low of £182m in January and a far cry from the £529m raised in June 2011
  • £46m raised by the 6 new entrants
  • £117m raised in further issues
  • The total funds raised year to date on AIM at £1.46bn is down 48.2% on equivalent period in 2011 (and 2011 was a tough enough year!)

• 5 are currently trading above their issue price
• The 6 additions were offset by 7 departures
• Total number of companies on AIM fell from 1,114 to 1,113

25/06/12

AIM Market Update – June 2012

• AIM IPOs appear to be priced more realistically
• In a weak market, 10 of the 16 are trading in line or above their issue price
• The average return of all 16 is +21.1%

• 9 companies joined the market in May, offset by the 12 departures
• The market’s 9 new entrants raised a total of £89.7m on admission
• An additional £152.4m was raised in secondary placings

22/05/12

AIM Market Update – May 2012

• Again the additions were offset by the 6 departures
• In summary, the total number of companies on AIM fell from 1,118 to 1,117 by the end of April

• The market’s 5 new entrants raised a total of £19.64m on admission
• An additional £193.1m was raised in secondary placings

• AIM stocks traded an average 2.9% of their market cap in the period

17/04/12

AIM Market Update – April 2012

• An increase from the 4 in February but again the additions were more than offset by the 11 departures
• In summary, the total number of companies on AIM fell from 1,122 to 1,118 by the end of March

• The market’s 7 new entrants raised a total of £35.8m on admission. An additional £329.8m was raised in secondary placings
• Total Q1 2012 funds raised (new issues and secondaries) totalled £791m, down from £1.7bn in Q1 2011

• 3 more of AIM’s companies were acquired in March
• The average premium paid for the 20 AIM companies that have been acquired so far in 2012 is 53.5%

• The average AIM stock traded 4.2% of its market Cap in March, in line with February

18/03/12

AIM Market Update – March 2012

• 11 companies left AIM in February – 7 were acquired
• 17 AIM companies have been acquired in 2012 YTD
• Average transaction length of 84 days and average acquisition premium of 52%

• Allenby Capital expect a pick up in IPOs in Q2 driven by the YTD pick up in markets, favourable changes to EIS/VCT rules, rush to get deals done ahead of the summer /Olympic period

• The largest placing was the £75m raised by Avanti Communications Plc – for once Natural Resources didn’t lead the charge

16/02/12

AIM Market Update – February 2012

• 3 admissions to AIM in January raising just £3.5m in the process
• 17 companies left the market – interestingly 10 of which were acquired – highlighting AIM’s ability to act as a shop window for companies
• £179m was raised in secondary placings – again Natural Resources stealing the show
• Liquidity improved – AIM stocks traded an average 3.7% of their market caps in the month, the highest monthly average since March 2010