Pembridge Resources, the AIM market and a standard listing - part 2

Tuesday, 27 June 2017, 10:48 am

Pembridge Resources is pressing ahead with its standard listing move and little old Betaville understands the bookbuilding process has already started.

That's bad news for AIM, which has seen the number of companies listed on the junior market decline over the last decade. According to the London Stock Exchange's website there were 1694 companies listed on AIM in 2007 and that has fallen almost every year since then.

So, what's behind the decline in AIM listings? Well, there are several reasons, including the rise of other type funding methods, such as crowdfunding.

Pembridge Resources, though, is opting for main listing because AIM’s deadlines meant it could be forced to overpay for a reverse takeover or suspended if it failed to raise £6m in the short time frame allowed under the Rule 8 investment company guidelines.

And the mining investment vehicle, run by former Cross Asset Management founder David Linsley, is unlikely to be the last tiddler to opt for the main market.

Legal sources have told little old Betaville that the UK Listing Authority may ditch EU regulations stipulating that any company can list on the main market as long as it has £750,000 of shares in free float after Brexit in 2019...

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[Disclaimer - the information on Betaville does not consitute any form of investment recommendation and is not intended to be relied upon by readers in making, or refraining from, any investment decisions].

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