The value of companies that floated on the Alternative Investment Market (AIM) more than doubled in 2014, Experian has revealed.
According to data published by the global information services company, there were 75 initial public offering (IPO) transactions on London Stock Exchange’s junior market last year. Together they were worth a total of £2.5bn, an increase in value of 134% on 2013.
Wholesale and retail was the most active sector, according to Experian, contributing 41% to the overall value of transactions.
Next came manufacturing (34%) and the information and communication sector (24%).
Although finance and insurance services was the third most active sector on London’s junior market in 2013, contributing 30% of the value, it only ranked in fifth place last year, accounting for 12% of the total transaction value.
Wendy Driver, business development manager at Experian UK and Ireland, believes the growing number of IPOs suggests that smaller businesses are increasingly considering listing as an option to finance growth.
But she cautioned that making a company available for public investment was not a decision to be taken lightly.
“Business owners may be curious about what their company could be floated for and should look back at IPOs of companies similar in size and sector in previous years, to decide whether it’s an option they wish to explore further,” she said.