AIM-listed tech firms raise £575m in six months

Technology businesses on the London Stock Exchange’s Alternative Investment Market (AIM) raised more than £575m in the six months to June 30 2018.

New data released today (September 6) showed that eight IPOs (initial public offerings) in the period generated £186m.

By comparison, the same half-year in 2017 saw eight IPOs raise £129m.

The figures come from the latest Tech Aim Barometer published by accountancy firm Moore Stephens.

The study placed the average value of a tech firm on AIM at £123m as of June 30, which is 8.2% more than on December 31 2017 and over double the average value in June 2016.

But Moore Stephens has forecast the rate of increase in value to continue to slow during H2 2018, in part because of the ongoing Brexit negotiations.

Secondary fundraises saw the most capital raised in the last six months, hitting £390m. While that figure is down from £810m in the six months previous, it still represents the second highest level in the last three years.

Over 25% of the six-month total was raised by online estate agents Purplebricks, which generated £100m in March.

Dougie Hunter, director at Moore Stephens, said: “There’s no doubt that in the last 12 months AIM has been an attractive market for UK and international businesses raising capital.

“There is likely to be a short pause and intake of breath in the coming months with Brexit and other political turmoil.”

He added: “Long-term, however, we still see a strong appetite from investors and companies alike towards AIM and particularly amongst the technology sector.”