London Stock Exchange (LSE) is celebrating the 25th anniversary of the launch of AIM this week.
Since its inception in June 1995, AIM has admitted over 3,800 companies from across the globe, raising a combined £118 billion in equity capital.
Research published by Grant Thornton UK LLP shows that, in 2019 alone, AIM companies contributed £33.5 billion Gross Value Added (GVA) to UK GDP and directly supported more than 430,000 jobs.
When economic activity through AIM companies’ supply chains and expenditure of employees in their local economies is taken into account, the overall economic impact of AIM companies is even larger – equivalent to £67.2bn in GVA and over 900,000 jobs.
UK companies admitted to AIM have also continued to expand internationally. Over the last 10 years, these companies have grown their overseas sales from £7 billion in 2010 to £12.4 billion in 2019.
Nikhil Rathi, CEO, London Stock Exchange Plc and Director of International Development, LSEG, comments: “AIM was launched 25 years ago to provide a platform for growth companies to raise long-term patient equity capital.
“Since then it has become one of the most successful growth markets in the world, helping over 3,800 companies raise a combined £118 billion.
“This continued access to capital is particularly important today helping to support business in the recovery from the impact of the COVID-19 pandemic as firms look not only to strengthen their balance sheets but to fund innovation and growth.
He continues: “Ensuring that dynamic growth companies can realise their potential is vital to the UK’s current and future prosperity. Providing access to capital at all stages in a company’s development is a key contributor to success and we have a long-term commitment to supporting these entrepreneurial firms into the future.
“By enabling retail and institutional investors to access growth, AIM plays a vital part in the nation’s wealth creation helping to fund the creation of jobs, drive productivity and foster innovation and exports.”