London’s Alternative Investment Market (AIM) is showing strong signs of revival after two quieter years, with £111.8m raised in the first five months of 2025, UHY Hacker Young has highlighted.

Over those five months, four new companies listed on AIM and raised £111.8m, compared to 10 companies listing throughout the whole of 2024, raising £119.6m in total.

UHY UK group chair and partner, Colin Wright, said the resurgence had come at a time when uncertainty in US markets was prompting investors and companies to take a fresh look at the UK.

“AIM has underperformed against its longer-term track record for IPOs in the past couple of years, meaning this market bounce back in the start of this year is likely to provide some optimism for investors and those considering an IPO,” Wright added.

Over the past decade, AIM has been Europe’s most active growth market, raising £39bn of long-term capital since 2017, accounting for 53% of all money raised through European growth markets.

The recent trend of US exceptionalism in global equity markets ending was working in AIM’s favour, according to Wright, with the tariffs announced in April leading to outflows of international investors from the US.

European markets were found to be benefitting from this outflow, with UK indices dealing with equity market volatility better than their US peers.

UHY noted that the UK was now “very competitive” for IPOs and was especially supportive for companies with valuations lower than $500m.

The London Stock Exchange (LSE) has launched a consultation on ‘Shaping the Future of AIM’, aiming to reform its regulatory architecture.

“To begin with, businesses would welcome a reduced regulatory burden, which incurs costs that can look prohibitive for smaller companies at the early stages of their growth cycle,” Wright stated.

“Equally, any regulatory streamlining that speeds up the process of listing on AIM for companies would also be a welcomed improvement.”

The LSE is also seeking feedback on how to change the NOMAD role at AIM companies, including reducing disclosure requirements to develop the NOMAD position to focus more on corporate finance advice in disclosure discussions with other advisers.

“The LSE’s goal is to ensure that AIM remains a premier growth market for developing and entrepreneurial companies,” Wright said.

“If this is achieved, AIM will provide an attractive venue for growth companies from both the UK and overseas, which should lead to AIM companies making a significant contribution to the London and UK economy.

“By combining high quality companies, investor interest and an opportunity to improve regulation, AIM is in a strong position to win more than its fair share of IPOs in the years ahead.”

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