The Alternative Investment Market (AIM’s) rules are kept as relaxed as possible to encourage a wide variety of companies to join and keep costs of membership and capital raising to a minimum. However, it is felt necessary to have some vetting process for firms wishing to float on the AIM. This policing role was given to nominated advisers who are paid a fee by the company to act as unofficial ‘sponsors’ in investigating and verifying its financial health. When the nominated adviser’s fee is added to those of the Stock Exchange, accountants, lawyers, printers and so on, the cost can be as much as 10–40% of the amount being raised.
The AIM was designed so that the cost of joining was ...
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