Efforts by law firms, other advisers and the London Stock Exchange (LSE) to promote the Alternative Investment Market (AIM) internationally have seen the UK's secondary market achieve by far its most successful year since its launch in 1995, LSE figures have revealed.

AIM saw the number of initial public offerings (IPOs) soar last year to 226, compared to just 66 in 2003, with as many as 53 by international companies.


Some 333 companies joined AIM during the year, with £2.2 billion raised - double the amount in 2003.


Jay: accelerated IPOs

Nick Davis, finance partner at City firm Memery Crystal, said: 'There have been a huge number of international IPOs on AIM this year, which is partly due to the marketing done by law firms extolling the virtues of AIM abroad in Canada, Australia, India, South Africa and elsewhere.'

He added: 'An astonishing number of natural resources companies have been listed on AIM - a lot of these were companies targeted for marketing, and there is a strong appetite in London for resource stocks. Technology companies are also coming back into the arena.'


Mining companies now comprise 17% of the AIM market, rising to a third when oil is included. One of the largest IPOs was Gulf Keystone Petroleum, which raised £60 million last summer.


Peter Jay, corporate partner at City firm Beachcroft Wansbroughs, said: 'AIM is now being used as an additional tool to assist succession change and management buy-outs of companies. An interesting trend last year was the use of accelerated IPOs, where an AIM listing is used in conjunction with bank funding. That is an indication of one of the ways that the market will move in the future.'


He continued: 'This year has already started busier than last year, and there is no indication that it will slow down. The only limit apart from the economy is the availability of investor funds, which have not yet reached their limit.'


Mark Dighero, corporate partner at City firm Allen & Overy, said: 'A lot of large investment banks that would not have used AIM a few years ago now see it as a place to do business. AIM has attracted businesses that would otherwise have raised funds privately.'


He added: 'Law firms are much more willing to do AIM work now - it is no longer just the preserve of specialists. Allen & Overy has been doing more of this work.'


The LSE's main market saw 49 IPOs, compared to 20 in 2003.