It seems 2025 looks poised to be a big IPO and AIM year, both for Fintech brands such as Monzo Bank, Zopa Bank, Revolut, Klarnaand Starling Bank in the UK, as well as retailers and tech firms such as SHEIN, Instacart and Discord. all predicted to have upcoming IPO’s in the US too.
So it was surprising to see the recent report by the Tony Blair Institute for Global Change and Onward that suggested that AIM should be closed down and seen as a failure. It is true that AIM has not been without challenges, the high cost of being AIM listed is proving too much for media sized organisations such as the N Brown Group who have recently been the subject of a takeover bid the Alliance family.
The Alliance family explained that “given N Brown’s current shareholder structure and very low trading liquidity, as well as ‘limited’ UK fund manager appetite for small-cap consumer stocks, the fashion firm is ‘not benefiting from being listed on the AIM market, whilst having to bear significant costs associated with its listing.”
But for many organisations, such as 1Spatial, AIM has been a crucial component of success. In a recent interview in UKTN Claire Milverton, CEO of data management software business 1Spatial, said: “We had a difficult time a few years ago where we had to raise some money to pay off bank debt and it gave us the money to invest in our technology and allowed us to expand to the US. So, I would be very disappointed if that took place. I think the market is excellent for companies like us, so we are not burdened with a full list of regulation. We’ve got very supportive shareholders, we’ve created these transformational apps for the market. [Without AIM] I don’t think we would have had the success of where we are today.”
There is no mistaking around the benefits of AIM for enabling growth and continued investment in technology, but it is also true that the current methodology needs improving.
For many, the investment before, during and after AIM listing is not only in the process itself but in the need to invest in the right team to support the organisation through this change. Securing the right non-executive leadership, such as those who have worked within the FTSE 100 market, and those who have undergone the journey as an executive, both in terms of IPO’s and AIM listing, is imperative. Leaning on the shoulders of experienced NED’s ensures that the organisation is prepared for the pitfalls and the benefits of such a journey, but this talent pool is small and in high demand.
For those starting their NED journey, there are rich pickings in the number of opportunities in the market, and for those looking to list, they need to move fast and with clarity to secure the best support.
If 2025 is indeed a year of IPO’s and AIM listings filling the UK market, then it will also be the “Year of the NED” in our view, with more and more demand placed on securing experienced, diverse, and skills led NEDs to hand hold those who are ready to float.
If you’d like to find out more about starting your NED journey, or growing your NED portfolio, get in touch.
John Wakeford – email me at JohnW@HWGlobal.co
Pascale Gara – email me at PascaleG@HWGlobal.co
Martha Rutherford – email me at MarthaR@HWGlobal.co
