Editorial: AIM IPO picture begins to brighten

Failed floats – think theme park operator Merlin Entertainments, fashion retailer New Look and travel software group Travelport – might be spoiling the party at the larger end of the London market, as private equity owners struggle to sell on their investments to peeved institutions with fingers previously burned. But on AIM, the new issues picture appears, at long last, to be brightening, with a number of successful issues having got away.

Over recent weeks, the universe of opportunity for small-cap-focused investors has been broadened by a highly diverse band of AIM newcomers, many covered in this month’s issue. And in a trend demonstrating the ongoing international allure of AIM, a high portion of them are from overseas.

They range from UK consumer healthcare concern Oxford Nutrascience to New Zealand oil and gas explorer Kea Petroleum, from Scottish gold and silver producer Scotgold Resources and homeland security buy-and-build Digital Barriers to Equatorial Palm Oil, which managed to prise £6.5 million from investors to develop sustainable palm oil plantations in Liberia.

Clearly, while the previous torrent of new issues slowed to a trickle during the financial crisis, for overseas businesses, the pre-eminence of AIM as a destination to both list and raise funds has remained intact. In a bullish sign, Anglo-Brazilian real estate development hopeful Squarestone Brasil says it is plotting a fundraising of up to £250 million, which will make it the biggest IPO on AIM in more than a year and the first property IPO of 2010. It will offer investors exposure to Brazil’s compelling economic dynamics.

And in the first half of this year, investors can expect debut dealings in Malaysian IT systems concern Teliti International, which hopes to boost its international status and IT industry credibility with its forthcoming AIM float.

Closer to home, Leeds-based healthcare software and services supplier EMIS plans to raise £50 million to help roll out its systems across the healthcare sector and, where possible, complete bolt-on deals.

Naturally, here at Growth Company Investor, we will assess the investment cases of these businesses for you – although the best way to scrutinise such companies is to kick the tyres and meet the management teams of such smaller companies in person.

Speaking of which, the Growth Company Investor Show, to be held on 9 June at the Barbican Exhibition Halls in London, will provide you with just that opportunity. With up to 100 companies expected to attend, it really is the must-attend investment event of 2010.

Details on exhibiting at the show and registering for your free entry ticket can be found on the website www.growthcompanyinvestorshow.co.uk