A group of City execs have laid out plans for a new small-cap stock market in a bid to rival the ailing AIM and rejuvenate London’s public markets.
Former Boku boss Jon Prideaux and former AIM chief executive Martin Graham are understood to have approached investors over a £4m fundraising to launch the new exchange, known as the Global Growth Market (GGM).
The funding would be used to build GGM’s technology platform and submit a licensing application with the financial regulator.
The new market plans to eliminate fund management fees and carried interest in return for providing half of the capital needs of eligible companies to encourage firms to sign up, according to a report by Sky News’ Mark Kleinman.
“Public markets stopped working for growth companies years ago,” Prideaux told Sky.
“We are building a new market that brings both companies and capital back to the public markets – by offering a better deal to both.”
AIM transformation talks
Plans for the new market come after Prideaux initiated talks with AIM owner LSEG to revamp London’s junior market after a prolonged drought in listings.
Prideaux did not give details on proposals but a source who had met the group told Reuters the plan would involve the London Stock Exchange Group (LSEG) spinning off AIM to allow new investors to come in.
However, LSEG firmly rejected any notions of a deal.
“AIM is not for sale,” LSEG said in a statement.
“It is a vital component of our strategy to build a funding continuum that is seamlessly connected so that companies can start, grow, scale, and stay in the UK.
“Over the past 30 years, AIM has established its position as the preeminent market for dynamic high-growth business supported by a remarkable community of companies, advisors and investors.”
The number of AIM companies worth over £1bn has dropped by 80 per cent since the start of 2022 and almost halved over the last year, according to data from the London Stock Exchange.