Acceleration in fundraising activity
Not surprisingly, the AIM market was hit hard by the impact of COVID-19 in Q1 this year. However, fundraisings continued apace providing much needed balance sheet strengthening. There was a noticeable pick up in fund raising activity after the March 18 low with activity continuing into April.
· The AIM market finished the quarter with an overall value of £74.3bn, down 28.7% from where it was on December 31st, 2019.
· Total money raised (from both new and further issues) in Q1 2020 was £1.01bn, flat on the comparative period last year.
· Six new joiners to AIM in the period, raising a collective total of £181.m.
· Secondary fundraise market remains particularly healthy.
o £828m was raised in Q1
o Activity ramped up markedly post the March 18 market low with over £450m of secondary raises announced from March 18 to the start of the Easter weekend on April 9.
o But at a price:
Since March 18 the placings have been completed at a median 49% discount to the February high share prices.
Post the placings the share prices have rallied on average +13% primarily, we believe, as the market takes comfort from the strengthened balance sheets.
· Other trends seen on AIM in Q1 include:
o Continued high levels of M&A activity as a total of 11 deals were either successfully completed or announced in the period.
o Increased liquidity driven in our view by high levels of retail activity as the average trade size has been comparatively small.