AIM is the London Stock Exchange’s international market for growing companies, from venture capital-backed start-ups to well-established businesses seeking to expand.
The Exchange’s objective in setting up AIM was to offer smaller companies (in the UK and abroad and from any sector) the opportunity to access London’s capital markets via market with a pragmatic and appropriate approach to regulation.
More than 2,500 companies have joined AIM – raising billions of pounds in the process, both through initial public offerings (IPOs) and further capital raisings. Many companies have subsequently transferred to the Exchange’s Main Market.
Many of the companies listed are offshore vehicles and the Isle of Man is the leading provider of these vehicles.
Why Use Simcocks?
Simcocks is a leading Isle of Man law practice. Our Investment Funds and Capital Markets lawyers have an international background and are dedicated to providing expert and responsive services in relation to the listing of Isle of Man incorporated company vehicles on AIM.
Simcocks has a proven record of working in partnership with leading law firms to effect international transactions for clients, including market listings.
Our experience in this field means we can give clients the expert and responsive service they need to enable matters to be concluded swiftly and effectively.
In a typical listing, we act in conjunction with the English legal advisers to the company and provide advice and assistance on all Isle of Man aspects of the transaction. Among other matters, we will draft or review and amend the Memorandum and Articles of the company; review the admission document to ensure compliance with Manx law; review other documentation; and provide an Isle of Man legal opinion.
Post listing, we continue to act as required, including in relation to further fund raisings.
Listing on AIM
A listing on AIM involves the following participants and service providers:
AIM is suitable for smaller companies from any sector and from any country. The company is likely to be advised by UK solicitors and reporting accountants and by financial public relations and investor relations consultants. Where the company is incorporated offshore lawyers in the jurisdiction of incorporation will also be employed.
Shares are usually in uncertificated form and title is transferred by means of an instruction issued in accordance with the rules of the CREST system. For this purpose, a registrar/CREST service provider is appointed.
The Nominated Adviser
Every company joining AIM must appoint a Nominated Adviser (known as a Nomad), which must be approved by the Exchange. The role of the Nomad includes pre-vetting of the company, assisting it through the listing process and the provision of advice and assistance post listing to ensure that the company complies with its ongoing obligations. The Nomad will appoint its own legal advisers.
The broker is responsible for facilitating and promoting trading in the company’s shares on the market. In many cases, the broker is the same firm as the Nomad. The Broker may also appoint its own legal advisers.
Investors range from City institutions to small investors.
The Exchange’s AIM Team
The Exchange has a specialist AIM team dedicated to providing advice, information and support for all AIM participants.
Isle of Man Companies
Isle of Man Companies suitable for listing on AIM can be incorporated under two separate pieces of legislation:
The Companies Acts 1931 – 2004 (the “1931 Act”); and
The Companies Act 2006 (the “2006 Act”; a company incorporated under this Act is sometimes referred to as a “New Manx Vehicle” or “NMV”).
There are a number of advantages of the 2006 Act, which can be found here.
Isle of Man Companies as AIM Listing Vehicles
There has been considerable growth in the number of listings based on an Isle of Man incorporated company vehicle. Indeed, it appears the Isle of Man is the offshore jurisdiction of choice for AIM listings, particularly for Eastern European, Indian, Russian and Chinese businesses.
Find out why you should use an Isle of Man Company here.