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IPO Activity on London’s AIM Market Slows Amid Brexit Jitters

IPO Activity on London’s AIM Market Slows Amid Brexit Jitters

(Bloomberg) -- While growth companies continue to raise money on London Stock Exchange’s AIM market, uncertainty surrounding Britain’s departure from the European Union has slowed initial public offerings, according to accountancy firm UHY Hacker Young Group.

Just one firm -- pharmaceutical data analytics provider Diaceutics Ltd. -- listed on AIM in the first quarter of 2019, representing the slowest IPO activity on that market in a decade. The U.K. had been scheduled to leave the EU on March 29, but this has since been delayed until the end of October under a plan to avoid a chaotic no-deal scenario.

Despite the slowdown in floats, AIM companies raised almost 1.1 billion pounds ($1.4 billion) in the first three months of the year from IPOs and secondary issues, compared with a combined 424 million pounds raised on eight other junior markets in Europe, according to UHY Hacker Young.

IPO Activity on London’s AIM Market Slows Amid Brexit Jitters

“While investors in growth businesses are still comfortable in taking part in AIM’s secondary fundraises, Brexit seems to have led to a wait-and-see approach among companies considering floats,” Laurence Sacker, a partner at the firm, said in a statement.

To contact the reporter on this story: Lisa Pham in London at lpham14@bloomberg.net

To contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, John Viljoen, Tom Lavell

©2019 Bloomberg L.P.