AIM MARKET UPDATE December 2015
Allenby Capital Limited is authorised and regulated by the Financial Conduct Authority (register no. 489795) and a member of the London Stock Exchange and ISDX Growth Market
1
Information sourced from London Stock Exchange and Allenby Capital
CONTENTS
2
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November Overview
3
]]
New Admissions
4
]]
Secondary Fundraises
17
]]
Share Price Performance
24
]]
Trading Volumes
28
]]
AIM Market Overview
32
]]
Allenby Capital Overview
36
NOVEMBER OVERVIEW
Money raised £m New
1200 1000 800 600 400 200 0 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15
The number of companies on AIM decreased by seven in November, as the five new joiners were offset by twelve departures. As at end November, there were 1,049 AIM constituents, down 55 from 1,104 as at end December 2014.
Money raised £m Further 1400
Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15
On a more positive note, secondary fundraises continue apace with £232m
The average market capitalisation of AIM’s constituents as at end November was £70.5m, which is an increase of 8.9% on the average as at 31 December 2014. The median market cap. was £19.8m.
AIM MARKET New and Secondary raisings
Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 14
There were five new joiners in November: between them, they raised just £21.2m of new money. Two of these comprised conventional IPOs, one joined by way of a reverse takeover, and two comprised UK companies that moved their listings from the Main Market.
raised in the month, taking 2015’s total to £3.66bn. With one month to go this is already the most raised on AIM in secondary fundraises since 2010 and is up 37% on the corresponding period in 2014.
Funds raised (£m)
In November the trends seen on AIM throughout 2015 continued, namely a quiet IPO market but continued strength of activity in the secondary market (although initial indications are that the IPO market has picked up in December with several decent size deals set to list before the yearend)
AIM MARKET Equity raisings since inception
Funds raised (£m)
20,000
Money raised £m Further
15,000
Money raised £m New
10,000 5,000 0
3
2007
2008
2009
2010
2011
2012
2013
2014
2015 ytd
15,678 16,184
4,322
5,602
6,958
4,270
2,921
3,989
5,900
4,690
9,603
3,214
4,861
5,738
3,661
2,218
2,738
2,962
3,664
6,581
1,108
740
1,219
608.8
703
1,251
2,938
1,004
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
Total
96
824
692
585
934
3,092
1,128
976
2,095
4,656
8,942
Money raised £m Further
25
302
350
318
600
1,338
535
486
1,000
1,880
2,481
5,734
Money raised £m New
71
521
342
268
334
1,754
593
490
1,095
2,776
6,461
9,944
Information sourced from London Stock Exchange and Allenby Capital
2006
NEW ADMISSIONS
4
NOVEMBER 2015 - Decrease in number of AIM constituents by seven There were five new joiners to AIM in November. Two joined from the Main Market, two by way of conventional IPO and one by way of a reverse takeover of an existing AIM company. Of the twelve companies that left the market in the month: ]]
4 failed to appoint a new Nomad
]]
2 were acquired
]]
2 chose to delist
]]
1 was the subject of a reverse takeover
]]
1 discontinued trading operations and returned cash to shareholders
]]
1 failed to implement its investing policy within the required timeframe
]]
1 fell into administration
AIM MARKET Net new admissions / departures 1225 1205 1185 13
1165
5
17
15 1145 11
1125 1104
6
3
5
0 17
2
10 21
0
1105 40 1085 1065 1049 1045 November 30 2015
Other
Acquired
Administration
Chose to de-list
Merger
Reverse Take Over
Move to Main Market
IPO (Int.)
IPO (UK)
Introductions (Int.)
Introductions (UK)
Re-admissions (UK)
Re-admissions (UK)
Move from ISDX
Information sourced from London Stock Exchange and Allenby Capital
Move from Main Market
January 01 2015
5
NEW ADMISSIONS TO AIM SINCE INCEPTION
12000
600
New Money Raised
10000
500
8000
400
6000
300
4000
200
2000
100
0
0 Year
6
1995
1996
1997
Information sourced from London Stock Exchange and Allenby Capital
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Number of Admissions
New Money Raised (£k)
Number of Admissions
ADMISSIONS TO AIM IN NOVEMBER
COMPANY
Filtronic Plc
Faron Parmaceuticals Oy
Be Heard Group Plc
Gresham House Plc
Tlou Energy Ltd
DATE
16 Nov 2015
17 Nov 2015
23 Nov 2015
23 Nov 2015
30 Nov 2015
SUBSECTOR
Telecommunications Equipment
Biotechnology
Nonequity Investment Instruments
Equity Investment Instruments
Exploration & Production
Priced as of 09/12/2015
7
Information sourced from London Stock Exchange and Allenby Capital
ISSUE TYPE
DESCRIPTION
COUNTRY OF OPERATION
AMOUNT RAISED (£M)
MARKET VALUE AT IPO/ ADMISSION (£M)
PERFORMANCE SINCE JOINING AIM
Move from Main Market & Placing
Filtronic designs and manufactures a range of customised radio frequency, microwave and millimetre wave components and subsystems. In August, the Company announced that it was seeking shareholder approval to transfer its listing from the Official List to AIM, in tandem with carrying out a £4.5m secondary placing. The proceeds will be used to finance Filtronic’s working capital requirements as it moves from new product introduction to volume production, following the winning of its first production tooling orders from a major telecoms industry original equipment manufacturer for Ultra-Wide Band integrated antennas.
UK
4.50
9.84
5.0%
IPO & Placing
Faron is a Finland-based clinical stage biopharmaceutical company that is involved in developing drugs focusing on acute organ traumas, cancer immunotherapy and vascular damage. The Company’s flagship product is Traumakine®, which is in Phase III development for the treatment of acute respiratory distress syndrome (‘ARDS’). ARDS is a severe, life threatening medical condition characterised by widespread capillary leakage and inflammation in the lungs. Currently there are no approved pharmacological treatments for this life threatening medical condition. The £10m fundraise at IPO will be used primarily to fund the initial pan-European Phase III clinical trial of Traumakine®.
Finland
10.00
60.09
0.0%
Move from Main Market & Placing
Main Market listed cash shell Mithril Capital announced the proposed acquisition of Agenda 21 Digital Holding Ltd in October, for an initial consideration of £3.3m and deferred consideration of a further £8.6m (payable subject to performance criteria over the next three years). Founded in 2005, Agenda 21 is a market-leading digital media and analytics agency. Upon completion of the acquisition, Mithril renamed as Be Heard Group, moved its listing from the Main Market to AIM and a completed an equity fundraise of £5.5m. The Enlarged Group will seek to build a network of digital companies spanning the marketing services, technology and e-commerce sectors across the UK, the US and Europe.
UK
5.50
10.82
-3.7%
Introduction Readmission
Gresham House is a specialist asset manager focused on alternative investment strategies and illiquid asset classes. In November the Company acquired UK-based Aitchesse Ltd for a maximum consideration of £7.7m in a deal that constituted a reverse takeover under AIM rules. Aitchesse is one the leading managers of UK commercial forestry, with assets under management of circa £193m across a mix of managed accounts on behalf of endowments, family offices and private individuals.
UK
0.00
29.41
16.9%
IPO & Placing
Tlou Energy is an ASX listed company focussed on the exploration for and proposed production of unconventional gas, principally coal bed methane (‘CBM’). The Group’s focus is currently on its licences in Botswana. The Company gained a second listing when it joined AIM in November and it raised £1.2m in newly issued equity: the proceeds of the fundraise are to be used for gas production testing; for Reserve Certification and EIA approval; and for general, administrative and transaction costs.
Australia
1.20
13.37
-17.2%
GEOGRAPHICAL BREAKDOWN OF AIM’S 2015 NEW ENTRANTS Number of companies and amounts raised
Finland (1, £10.00m) USA (2, £68.63m) Ireland (2, £104.46m)
Israel (2, £30.51m)
UK (37, £452.58m)
Myanmar (1, £1.68m)
Spain (1, £250.99)
Malaysia (1, £16.22m)
Barbados (1, £63m) Malta (1) Brazil (1) Gabon (1, £9.65m)
8
China (3, £16.42m)
Information sourced from London Stock Exchange and Allenby Capital
2015 AIM ADMISSIONS There have been 55 admissions to AIM through the end of November 2015. These have been offset by 110 departures, resulting in a total number of constituents (as at end November) of 1,049. In comparison, there were 101 admissions to AIM in the corresponding period in 2014, and only 94 departures. There was a slowdown in the IPO market ahead of the UK General Election in May. Despite the election result being viewed as ‘market favourable’, the volume and quantum of IPOs has yet to recover.
The new joiners in 2015 have raised a total of £1,025m upon admission, which amounts to a decrease of 60% on the total raised in the same period in 2014. This average of £93m per month is opposed to 2014’s average of £231m per month. 2015’s 55 joiners had a combined market capitalisation upon their respective admissions of £4,898m (equating to an average of £89.1m). 37 (or 67%) of the new joiners have their central operations based in the UK. The most represented sector so far is the Financials sector (with 15 new joiners);
BREAKDOWN OF AIM’S 2015 NEW ENTRANTS Telecommunications; 1% Technology; 3%
followed by the Industrials and Consumer Services sectors, which have witnessed 11 and 10 businesses respectively join AIM so far in 2015. The trends that emerged over the course of 2013-14 have continued throughout 2015. These are namely i) that AIM is becoming less of a Natural Resources centric market; ii) that larger companies are joining the market, with smaller, weaker ones departing; iii) that fundraisings are increasing in size; and iv) that in the current economic climate investors prefer companies with UK based operations.
BREAKDOWN OF THE £1,025M NEW MONEY RAISED IN 2015 Consumer Goods; 4%
Consumer Goods; 4%
Telecommunications; 24%
Real Estate; 2% Oil & Gas; 1%
Consumer Services; 10%
Mining; 2%
Technology; 1% Oil & Gas; 0% Consumer Services; 38%
Real Estate; 0% Mining; 1%
Industrials; 11%
Industrials; 10%
Health Care; 6%
9
Information sourced from London Stock Exchange and Allenby Capital
Financials; 15%
Health Care; 10%
Financials; 12%
2015 VENDOR PLACINGS We have calculated that since the beginning of 2014, 22.5% of funds raised upon admission to AIM by new companies are attributable to existing shareholders selling equity in their companies. Such ‘Vendors’ come in two broad groups: founding shareholders and/or management teams wishing to partially or fully cash in on their efforts made in building their businesses; and professional investing entities, notably Private Equity houses, seeking to crystallise their investments. In November 2015, none of the four companies that raised funds upon admission to AIM performed a Vendor placing. 11 (or 25%) of the 44 companies that have raised funds upon admission in 2015
have included selling shareholders. Vendor placings in the period amount to £127m (or 12.4%) of the total equity placed by new joiners. Ten of the eleven vendor groups have comprised founding shareholders, members of management and/or related parties, whilst the largest shareholder in the eleventh vendor group was a Private Equity house. This particular vendor placing, carried out in May, represents the only instance in 2015 that a Private Equity house has used AIM to facilitate an exit from an investment. Eight of the eleven companies have their central operations based in the UK or elsewhere in Western Europe.
2014 VENDOR PLACINGS: £766M OF TOTAL £2,938M
LARGEST VENDOR PLACINGS 2015 DATE
COMPANY
VENDOR
VENDOR PLACING (£M)
26 May 15
Elegant Hotels Group Plc
Vision Capital Partners IV, LP and management
30.8
04 February 15
Dalata Hotel Group Plc
Founders / management
25.1
08 June 15
Gateley (Holdings) Plc
Founders / management
25.0
19 June 15
Applegreen Plc
Founders / management
15.8
07 May 15
Curtis Banks Group Ltd
Founders / management
13.8
06 January 15
Gama Aviation Plc
Founders / management
5.9
11 June 15
Adgorithms Ltd
Founders / management
5.0
11 February 15
Premier Technical Services Group Plc
Founders / management
3.0
06 March 15
Bilby Plc
Founders / management
1.6
16 March 15
Techfinancials, Inc.
Founders / management
0.5
2015 YTD VENDOR PLACINGS: £127M OF TOTAL £1,025M £126.8 , 12.4%
£766.4 ; 26.1%
£2,171.9 ; 73.9%
Vendor Placings (£m) New Issues (£m) 10
Information sourced from London Stock Exchange and Allenby Capital
£898.6 , 87.6%
Vendor Placings (£m) New Issues (£m)
2015 AIM ADMISSIONS Winners and losers
Date Listed
Issue type
Company
Subsector
Country of Operation
Market Value on admission (£m)
Money Raised (£m)
Issue Price (P)
Current Price
Performance
Feb 11 2015
Move from Main Market & Placing
CPP Group Plc
Business Support Services
UK
25.15
20.00
3.00
13.50
350.0%
Feb 13 2015
Re-admission & Placing
Tavistock Investments Plc
Asset Managers
UK
5.49
3.06
2.00
5.90
195.0%
Apr 02 2015
IPO & Placing
Motif Bio Plc
Biotechnology
USA
12.85
2.84
20.00
44.00
120.0%
Mar 06 2015
IPO & Placing
Bilby Plc
Business Support Services
UK
17.00
4.11
58.00
127.50
119.8%
May 19 2015
IPO & Placing
Stride Gaming Plc
Gambling
UK
66.20
11.12
132.00
260.00
97.0%
Feb 04 2015
Re-admission & Placing
Dalata Hotel Group Plc
Hotels
Ireland
288.32
37.61
205.50
367.50
78.8%
Feb 11 2015
IPO & Placing
Premier Technical Services Group Plc
Business Support Services
UK
37.10
8.00
52.00
92.50
77.9%
May 07 2015
IPO & Placing
Curtis Banks Group Ltd
Specialty Finance
UK
85.02
21.32
190.00
337.50
77.6%
Jun 24 2015
Introduction Re-admission
Inspiration Healthcare Group Plc
Medical Equipment
UK
8.59
-
28.00
42.50
51.8%
Oct 02 2015
Re-admission & Placing
Conviviality Plc
Food Retailers & Wholesalers
UK
232.41
130.00
150.00
214.00
42.7%
Jun 19 2015
IPO & Placing
Applegreen Plc
Specialty Retailers
Ireland
218.47
66.85
277.00
384.00
38.6%
Jul 13 2015
Re-admission & Placing
Ten Alps Plc
Media Agencies
UK
8.39
4.50
2.00
2.63
31.5%
Aug 11 2015
Introduction Re-admission
Optimal Payments Plc
Financial Administration
UK
1,324.50
-
279.00
364.25
30.6%
Apr 02 2015
IPO & Placing
Marshall Motor Holdings Plc
Specialty Retailers
UK
115.08
40.00
149.00
185.50
24.5%
Jul 02 2015
Introduction
Hunters Property Plc
Real Estate Services
UK
16.89
-
60.00
73.00
21.7%
Jul 01 2015
IPO & Placing
Orchard Funding Group Plc
Specialty Finance
UK
20.50
10.00
96.00
112.50
17.2%
Nov 23 2015
Introduction Re-admission
Gresham House Plc
Equity Investment Instruments
UK
29.41
-
298.50
349.00
16.9%
Jan 27 2015
IPO & Placing
Grand Group Investment Plc
China
27.16
7.16
80.00
93.50
16.9%
Mar 19 2015
IPO & Placing
Zegona Communications Plc
UK
30.00
29.97
120.00
138.50
15.4%
Jun 04 2015
IPO & Placing
Fishing Republic Plc
Specialty Finance Nonequity Investment Instruments Recreational Products
UK
3.56
1.50
15.00
16.75
11.7%
May 26 2015
IPO & Placing
Elegant Hotels Group Plc
Hotels
Barbados
88.82
63.00
100.00
110.50
10.5%
Jun 08 2015
IPO & Placing
Gateley (Holdings) Plc
Business Support Services
UK
100.01
30.01
95.00
104.50
10.0%
Feb 04 2015
Introduction Re-admission
MXC Capital Plc
UK
57.98
-
2.95
3.18
7.8%
Aug 21 2015
Re-admission & Placing
365 Agile Group Plc
UK
12.51
2.24
75.00
79.50
6.0%
Aug 11 2015
IPO & Placing
Gloo Networks Plc
UK
30.72
30.00
120.00
126.00
5.0%
Nov 16 2015
Move from Main Market & Placing
Filtronic Plc
UK
9.84
4.50
5.00
5.25
5.0%
Jun 03 2015
IPO & Placing
Gear4music Holdings Plc
Specialty Finance Electrical Components & Equipment Nonequity Investment Instruments Telecommunications Equipment Recreational Products
UK
28.02
10.30
139.00
145.50
4.7%
May 07 2015
IPO & Placing
Verseon Corporation
Pharmaceuticals
USA
302.47
65.79
202.00
204.00
1.0%
Priced as of 09/12/2015
11
Information sourced from London Stock Exchange and Allenby Capital
2015 AIM ADMISSIONS Winners and losers, Continued...
Date Listed
Issue type
Company
Subsector
Country of Operation
Market Value on admission (£m)
Money Raised (£m)
Issue Price (P)
Current Price
Performance
Nov 17 2015
IPO & Placing
Faron Parmaceuticals Oy
Biotechnology
Finland
60.09
10.00
260.00
260.00
0.0%
Jan 06 2015
Re-admission & Placing
Gama Aviation Plc
Transportation Services
UK
120.38
23.00
280.00
278.50
-0.5%
Sep 10 2015
Re-admission & Placing
Safestay Plc
Hotels
UK
21.26
8.53
62.00
61.25
-1.2%
Aug 12 2015
Move from Main Market & Placing
Hornby Plc
UK
52.21
15.00
95.00
93.00
-2.1%
Nov 23 2015
Move from Main Market & Placing
Be Heard Group Plc
UK
10.82
5.50
3.25
3.13
-3.7%
UK
11.06
4.99
30.00
28.50
-5.0%
UK
4.63
2.17
1.68
1.58
-6.0%
Oct 19 2015
Move from Main Market & Placing
City of London Group Plc
Toys Nonequity Investment Instruments Specialty Finance
Aug 17 2015
Introduction Re-admission
REACT Group Plc
Business Support Services
Oct 30 2015
Introduction Re-admission
Safecharge International Group Ltd
Financial Administration
UK
404.24
-
267.00
248.00
-7.1%
Aug 14 2015
Re-admission & Placing
Zegona Communications Plc
Spain
294.07
250.99
150.00
138.50
-7.7%
May 12 2015
Move from Main Market & Placing
Satellite Solutions Worldwide Group Plc
UK
13.87
2.25
4.50
4.15
-7.8%
May 07 2015
IPO & Placing
Mayair Group Plc
Fixed Line Telecommunications Nonequity Investment Instruments Industrial Machinery
Malaysia
55.22
16.22
130.00
116.50
-10.4%
Mar 27 2015
IPO & Placing
Redx Pharma Plc
Biotechnology
UK
55.23
15.00
85.00
74.00
-12.9%
Sep 07 2015
Introduction
Harvest Minerals Ltd
General Mining
Brazil
3.22
-
0.73
0.63
-13.3%
Nov 30 2015
IPO & Placing
Tlou Energy Ltd
Exploration & Production
Australia
13.37
1.20
6.50
5.38
-17.2%
Jul 03 2015
IPO & Placing
K&C Reit Plc
Residential REITs
UK
4.38
3.57
10.00
7.63
-23.7%
Mar 30 2015
Introduction
Windar Photonics Plc
Electronic Equipment
UK
45.42
-
119.00
87.50
-26.5%
Oct 21 2015
IPO & Placing
Evgen Pharma Plc
Biotechnology
UK
26.96
7.00
37.00
26.00
-29.7%
Jun 08 2015
Introduction Re-admission
Tiso Blackstar Group SE
Equity Investment Instruments
Malta
189.33
-
71.00
45.00
-36.6%
Jul 01 2015
IPO & Placing
MySquar Ltd
Software
Myanmar
18.46
1.68
10.00
5.88
-41.2%
Mar 16 2015
IPO & Placing
Techfinancials, Inc.
Software
Israel
18.41
3.51
27.00
13.75
-49.1%
Jun 08 2015
Re-admission & Placing
Octagonal Plc
Specialty Finance
UK
11.21
1.70
2.00
0.91
-54.5%
Mar 27 2015
Introduction Re-admission
Ambrian Plc
Investment Services
UK
11.31
-
11.63
4.88
-58.0%
Feb 03 2015
IPO & Placing
Aquatic Foods Group Plc
Food Products
China
79.30
9.26
70.00
24.00
-65.7%
Jun 11 2015
IPO & Placing
Adgorithms Ltd
Media Agencies
Israel
82.06
27.00
133.00
33.00
-75.2%
Feb 12 2015
IPO & Placing
IronRidge Resources Ltd
Steel
Gabon
23.66
9.65
10.00
2.25
-77.5%
Aug 28 2015
Introduction Re-admission
PCG Entertainment Plc
China
62.00
-
5.25
0.88
-83.2%
Mar 10 2015
IPO & Placing
Gate Ventures Plc
Gambling Nonequity Investment Instruments
UK
3.24
3.24
10.00
Delisted
Delisted
TOTAL:
1,025.3
AVERAGE:
14.3%
MEDIAN:
2.8%
Priced as of 09/12/2015
12
Information sourced from London Stock Exchange and Allenby Capital
A LOOK BACK AT THE PERFORMANCE OF THE 2014 NEW JOINERS TO AIM
13
Date Listed
Issue type
Company
Subsector
Apr 24 2014 Aug 05 2014 Feb 18 2014 Nov 07 2014 Oct 29 2014 Oct 20 2014 Oct 10 2014 Jul 25 2014 May 19 2014 Nov 06 2014 Apr 29 2014 Nov 14 2014 Jun 26 2014 Mar 25 2014 Oct 30 2014 Apr 04 2014 Jul 04 2014 Mar 19 2014
Re-admission & Placing Re-admission & Placing IPO & Placing IPO & Placing Introduction Re-admission Move from ISDX & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing Introduction IPO & Placing Introduction from Main Market IPO & Placing Re-admission & Placing IPO & Placing Re-admission & Placing IPO & Placing
Tiziana Life Sciences Plc OptiBiotix Health Plc 4D Pharma Plc Fevertree Drinks Plc MXC Capital Plc Fulham Shore (The) Plc Gamma Communications Plc Bacanora Minerals Ltd Patisserie Holdings Plc Quartix Holdings Plc Bioventix Plc Mortgage Advice Bureau (Holdings) Plc Styles and Wood Group Plc Xeros Technology Group Plc Finsbury Food Group Plc Tekcapital Plc Premaitha Health Plc Dalata Hotel Group Plc
Biotechnology Biotechnology Pharmaceuticals Soft Drinks Specialty Finance Restaurants & Bars Mobile Telecommunications General Mining Restaurants & Bars Software Biotechnology Mortgage Finance Business Support Services Industrial Machinery Food Products Computer Services Biotechnology Hotels
Mar 21 2014
IPO & Placing
XL Media Plc
Media Agencies
Jan 10 2014 Dec 01 2014 Aug 22 2014
Re-admission & Placing Introduction Re-admission Re-admission & Placing
Nasstar Plc Powerflute OYJ Plutus PowerGen Plc
Apr 30 2014
IPO & Placing
Sprue Aegis Plc
Jul 28 2014 Aug 01 2014
IPO & Placing IPO & Placing
ULS Technology Plc GTS Chemical Holdings Plc
Feb 26 2014
IPO & Placing
Summit Germany Ltd
Apr 02 2014 May 19 2014 Feb 10 2014 May 29 2014 Jun 05 2014 Apr 16 2014 Dec 11 2014
IPO & Placing Re-admission & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing
Safecharge International Group Ltd Feedback Plc Manx Telecom Plc NAHL Group Plc Secure Income REIT Plc Eagle Eye Solutions Ltd Focusrite Plc
Internet Paper Electricity Electrical Components & Equipment Media Agencies Specialty Chemicals Real Estate Holding & Development Financial Administration Electronic Equipment Fixed Line Telecommunications Media Agencies Diversified REITs Internet Consumer Electronics
Priced as of 09/12/2015
Information sourced from London Stock Exchange and Allenby Capital
Country of Operation
Market Value on admission (£m)
Money Raised (£m)
Issue Price (P)
Current Price
Performance
UK UK UK UK UK UK UK Mexico UK UK UK UK UK UK UK UK UK Ireland Channel Islands UK Finland UK
5.63 5.74 36.55 154.42 12.48 19.95 165.17 25.83 170.00 54.10 29.99 80.82 5.65 80.04 74.47 5.63 20.70 254.98
2.00 3.30 16.55 93.33 0.00 1.60 82.59 5.41 79.30 11.36 0.00 36.34 0.00 27.58 35.00 2.00 7.24 221.54
12.00 8.00 100.00 134.00 1.00 6.00 187.00 33.00 170.00 116.00 595.00 160.00 91.50 123.00 59.00 25.00 11.00 209.00
209.50 75.00 787.50 540.00 3.15 17.13 457.50 79.50 380.50 246.50 1262.50 332.50 186.00 246.50 113.50 47.00 20.50 367.50
1645.8% 837.5% 687.5% 303.0% 215.0% 185.5% 144.7% 140.9% 123.8% 112.5% 112.2% 107.8% 103.3% 100.4% 92.4% 88.0% 86.4% 75.8%
92.89
41.82
49.00
83.25
69.9%
17.68 156.27 2.93
10.50 0.00 0.80
5.00 55.00 0.60
8.38 92.00 1.00
67.6% 67.3% 66.7%
UK
90.49
11.82
200.00
327.50
63.8%
UK China
25.89 36.83
12.10 0.83
40.00 36.00
64.75 55.50
61.9% 54.2%
Germany
152.87
28.48
0.63
0.97
54.0%
UK UK Isle of Man UK UK UK UK
242.61 2.38 160.21 82.30 293.09 33.02 73.17
75.75 0.30 156.32 35.00 15.00 6.00 22.44
162.00 1.25 142.00 200.00 174.00 164.00 126.00
248.00 1.88 208.50 285.00 247.50 230.00 172.50
53.1% 50.4% 46.8% 42.5% 42.2% 40.2% 36.9%
A LOOK BACK AT THE PERFORMANCE OF THE 2014 NEW JOINERS TO AIM Continued...
Date Listed
Issue type
Dec 08 2014
IPO & Placing
May 23 2014 Jul 24 2014 Dec 10 2014 Jun 27 2014 Aug 19 2014 Dec 02 2014 May 02 2014
Jun 30 2014
IPO & Placing IPO & Placing Re-admission & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing Move from Main Market & Placing Move from ISDX & Placing
Apr 04 2014
Subsector
Country of Operation
Market Value on admission (£m)
Money Raised (£m)
Issue Price (P)
Current Price
Performance
Constellation Healthcare Technologies Inc Shoe Zone Plc Epwin Group Plc Collagen Solutions Plc IMImobile Plc ATTRAQT Group Plc United Cacao Ltd SEZC Safestay Plc
Health Care Providers
USA
75.09
9.62
135.00
179.00
32.6%
Apparel Retailers Building Materials & Fixtures Health Care Providers Software Software Farming & Fishing Hotels
UK UK UK UK UK Peru UK
80.00 135.00 11.97 56.74 10.31 23.59 6.61
36.00 93.92 6.00 30.00 1.25 6.40 4.80
160.00 100.00 7.00 120.00 50.00 128.00 50.00
208.50 129.50 8.88 151.50 62.50 157.50 61.25
30.3% 29.5% 26.9% 26.3% 25.0% 23.0% 22.5%
Gresham House Plc
Equity Investment Instruments
UK
26.81
11.40
286.90
349.00
21.6%
AFH Financial Group Plc
Asset Managers
27.04
2.92
140.00
166.00
18.6%
Introduction Re-admission
Qannas Investments Ltd
Equity Investment Instruments
42.73
0.00
0.88
1.02
16.6%
Dec 22 2014 Jan 17 2014 Feb 13 2014 Feb 19 2014 May 20 2014
IPO & Placing IPO & Placing Introduction Re-admission & Placing Introduction Re-admission
Gfinity plc CityFibre Infrastructure Holdings Plc Actual Experience Plc Adamas Finance Asia Ltd Audioboom Group Plc
13.23 31.44 15.60 67.90 7.00
3.50 16.64 0.00 3.07 0.00
17.00 60.00 245.00 0.60 3.90
19.75 67.00 262.50 0.64 4.13
16.2% 11.7% 7.1% 6.7% 5.9%
Dec 22 2014
IPO & Placing
Market Tech Holdings Ltd
UK
750.00
100.00
200.00
210.50
5.3%
Jul 15 2014 Aug 27 2014 May 21 2014 Sep 19 2014
IPO & Placing IPO & Placing IPO & Placing Introduction from Main Market
Ergomed Plc Medaphor Group Plc Flowtech Fluidpower Plc Camellia Plc
Broadcasting & Entertainment Fixed Line Telecommunications Software Specialty Finance Equity Investment Instruments Real Estate Holding & Development Biotechnology Medical Equipment Specialty Chemicals Specialty Finance
UK Channel Islands UK UK UK China UK
46.00 10.06 40.00 257.03
11.00 4.68 39.90 0.00
160.00 50.00 100.00 9100.00
167.50 51.50 99.38 8987.00
4.7% 3.0% -0.6% -1.2%
May 02 2014
Introduction Re-admission
Sarossa Plc
Specialty Finance
10.87
0.00
1.90
1.85
-2.6%
Nov 17 2014 Jun 30 2014 Dec 11 2014 Dec 03 2014 May 12 2014 Dec 08 2014 Dec 18 2014 Dec 23 2014 Mar 27 2014
IPO & Placing IPO & Placing IPO & Placing Introduction IPO & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing
Strat Aero Plc Easyhotel Plc Quantum Pharma Plc Dalradian Resources Inc Galasys Plc Midatech Pharma Plc Mercia Technologies Plc Mill Residential REIT Plc Horizon Discovery Group Ltd
Business Support Services Hotels Pharmaceuticals Gold Mining Software Biotechnology Specialty Finance Residential REITs Biotechnology
UK UK UK UK Channel Islands UK UK UK UK China UK UK UK UK
6.16 50.00 125.00 53.22 14.97 74.21 106.00 3.50 120.47
0.65 30.00 106.07 0.00 3.12 32.00 71.83 0.99 68.62
8.00 80.00 100.00 38.00 22.50 267.00 50.00 100.00 180.00
7.63 75.50 92.00 34.38 19.75 233.50 40.75 81.50 145.00
-4.6% -5.6% -8.0% -9.5% -12.2% -12.5% -18.5% -18.5% -19.4%
Dec 01 2014
Priced as of 09/12/2015
14
Company
Information sourced from London Stock Exchange and Allenby Capital
A LOOK BACK AT THE PERFORMANCE OF THE 2014 NEW JOINERS TO AIM Continued...
Date Listed
Issue type
Company
Subsector
Country of Operation
Market Value on admission (£m)
Money Raised (£m)
Issue Price (P)
Current Price
Performance
Dec 04 2014 Jul 10 2014 Apr 14 2014 Oct 23 2014 Jul 18 2014 Jun 02 2014 May 07 2014
People's Operator (The) Plc Abzena Plc Haydale Graphene Industries Plc C4X Discovery Holdings Plc Aggregated Micro Power Holdings Plc Tavistock Investments Plc European Wealth Group Ltd
Mobile Telecommunications Biotechnology Specialty Chemicals Biotechnology Alternative Electricity Asset Managers Specialty Finance
UK UK UK UK UK UK UK
100.23 77.94 23.62 31.00 25.69 8.80 16.60
20.00 22.72 6.60 11.00 9.50 0.75 0.00
130.00 80.00 210.00 100.00 100.00 7.50 110.00
104.50 63.50 164.50 77.00 76.50 5.70 83.50
-19.6% -20.6% -21.7% -23.0% -23.5% -24.0% -24.1%
Marwyn Management Partners Plc
Specialty Finance
UK
19.68
5.00
4.25
3.13
-26.4%
Mar 28 2014 Mar 14 2014 Apr 29 2014 Jul 11 2014
IPO & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing Re-admission & Placing Introduction Re-admission Move from Main Market & Placing IPO & Placing IPO & Placing Re-admission & Placing IPO & Placing
Venture Life Group Plc boohoo.com Plc Mi-Pay Group Plc ClearStar Inc
UK UK UK USA
26.45 560.11 13.83 20.69
5.40 300.00 0.59 8.84
109.00 50.00 41.00 57.00
77.00 34.25 27.00 36.50
-29.4% -31.5% -34.1% -36.0%
Jan 20 2014
Introduction from Main Market
Vislink Plc
UK
50.12
0.00
44.00
27.00
-38.6%
Jan 23 2014 Jan 02 2014 May 12 2014 Oct 30 2014 Nov 03 2014 Aug 05 2014
Leyshon Energy Plc Collagen Solutions Plc Limitless Earth Plc Entu (UK) Plc Nektan Plc FAIRFX Group Plc
China UK UK UK Gibraltar UK
16.53 5.97 3.27 65.60 50.10 30.49
0.00 0.00 3.01 32.80 3.63 2.58
6.63 14.75 5.00 100.00 236.00 45.00
4.00 8.88 3.00 59.50 137.50 25.50
-39.6% -39.8% -40.0% -40.5% -41.7% -43.3%
C A Sperati Plc
Clothing & Accessories
UK
0.77
0.25
4.00
2.25
-43.8%
Dec 23 2014 Sep 30 2014 Apr 04 2014
Introduction Introduction Re-admission IPO & Placing IPO & Placing IPO & Placing IPO & Placing Move from Main Market & Placing Introduction from Main Market IPO & Placing IPO & Placing
Food Products Apparel Retailers Business Support Services Software Telecommunications Equipment Exploration & Production Health Care Providers Specialty Finance Home Improvement Retailers Gambling Consumer Finance
PuriCore Plc Crossrider Plc Rame Energy Plc
UK UK Chile
16.30 152.92 17.15
0.00 45.90 1.30
32.50 103.00 18.00
17.88 56.00 9.75
-45.0% -45.6% -45.8%
Jul 02 2014
IPO & Placing
Global Invacom Group Ltd
Singapore
55.77
11.77
19.75
10.50
-46.8%
Aug 01 2014
IPO & Placing
Savannah Petroleum Plc
Medical Equipment Media Agencies Business Support Services Telecommunications Equipment Exploration & Production
73.55
29.29
56.00
28.75
-48.7%
Mar 20 2014
Introduction Re-admission
Minds + Machines Group Ltd
Media Agencies
140.86
0.00
17.00
8.63
-49.2%
Jun 03 2014 Jan 06 2014 Jun 19 2014 May 28 2014 Mar 28 2014
Introduction IPO & Placing Introduction from Main Market IPO & Placing IPO & Placing
Biofrontera AG RM2 International SA Molins Plc Marimedia Ltd Scholium Group Ltd
Pharmaceuticals Containers & Packaging Industrial Machinery Media Agencies Specialty Retailers
Niger British Virgin Islands Germany Luxembourg UK Israel UK
55.49 278.29 34.79 94.72 13.20
0.00 137.20 0.00 29.76 8.00
313.00 88.00 172.50 153.00 100.00
147.50 40.00 77.00 65.00 40.00
-52.9% -54.5% -55.4% -57.5% -60.0%
Jul 14 2014
Mar 24 2014
Priced as of 09/12/2015
15
Information sourced from London Stock Exchange and Allenby Capital
A LOOK BACK AT THE PERFORMANCE OF THE 2014 NEW JOINERS TO AIM Continued...
Date Listed
Issue type
Company
Subsector
Country of Operation
Market Value on admission (£m)
Money Raised (£m)
Issue Price (P)
Current Price
Performance
Apr 29 2014 Mar 20 2014 Jun 27 2014 Feb 20 2014 Dec 11 2014 Jul 24 2014 Jun 10 2014 Feb 04 2014 May 08 2014 Jun 18 2014 Feb 27 2014 Aug 01 2014 Jun 16 2014 Mar 10 2014 Jun 20 2014 Jul 04 2014 Jul 15 2014 Dec 04 2014 Jul 14 2014
IPO & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing Re-admission & Placing IPO & Placing IPO & Placing Re-admission & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing IPO & Placing Re-admission & Placing Introduction Re-admission IPO & Placing IPO & Placing
Software Exploration & Production Media Agencies Renewable Energy Equipment Business Support Services Gambling Broadcasting & Entertainment Exploration & Production Medical Equipment Exploration & Production Delivery Services Steel Apparel Retailers Apparel Retailers Nonferrous Metals Gold Mining General Mining Gambling Furnishings
UK New Zealand Greece UK Australia China UK UK UK Russia UK China Australia India China Peru Kyrgyzstan China China
24.88 4.91 13.23 72.10 9.85 130.52 29.25 271.88 25.72 141.29 200.53 4.84 340.46 36.17 7.78 2.15 30.89 61.84 99.76
10.00 1.50 1.25 12.13 0.73 9.00 6.00 18.00 10.00 41.22 200.53 0.05 115.15 22.00 1.30 1.10 0.00 3.41 2.33
33.00 8.00 212.00 94.00 30.00 100.00 27.00 43.00 180.00 100.00 100.00 9.50 226.00 150.00 8.00 1.50 28.75 6.00 82.00
13.00 3.00 77.50 32.50 9.75 29.50 7.88 11.30 46.50 25.00 22.25 2.00 47.25 28.50 1.50 0.20 3.63 0.75 5.88
-60.6% -62.5% -63.4% -65.4% -67.5% -70.5% -70.8% -73.7% -74.2% -75.0% -77.8% -78.9% -79.1% -81.0% -81.3% -86.7% -87.4% -87.5% -92.8%
Oct 23 2014
Introduction Re-admission
Equity Investment Instruments
Kenya
35.45
0.00
9.00
0.55
-93.9%
Apr 15 2014 Nov 10 2014 Mar 28 2014
IPO & Placing IPO & Placing Introduction Re-admission
Rosslyn Data Technologies Plc Mosman Oil & Gas Ltd Cdialogues Plc Atlantis Resources Ltd Management Resource Solutions Plc DJI Holdings Plc 7Digital Group Plc Hurricane Energy Plc Rex Bionics Plc Zoltav Resources Inc DX (Group) Plc Pressfit Holdings Plc Mysale Group Plc Koovs Plc Zibao Metals Recycling Holdings Plc Hunter Resources Plc Tengri Resources Ltd PCG Entertainment Plc Jiasen International Holdings Ltd Atlas Development & Support Services Ltd Bagir Group Ltd Haversham Holdings Plc Qannas Investments Ltd
Clothing & Accessories Specialty Finance Equity Investment Instruments
Israel UK UAE TOTAL
28.12 30.05 45.17 2,938.3
20.00 30.00 0.00
56.00 120.00 0.88
3.00 Delisted Delisted AVERAGE MEDIAN
-94.6% Delisted Delisted 29.1% -8.8%
Priced as of 09/12/2015
16
Information sourced from London Stock Exchange and Allenby Capital
SECONDARY FUNDRAISES
17
NOVEMBER 2015 OVERVIEW £232m was raised on AIM’s Secondary Market in November, which was somewhat below the average monthly raise in the first ten months of the year, at £343m. The funds were raised through 49 issues (only including issues in excess of £100k), equating to an average fundraise of £4.7m. In October, Telford Homes Plc (TEF.L, £279m) announced it was undertaking a placing to raise gross proceeds of £50.0m. The equity raise was completed in November at a share price of 360p, a 3.1% discount to closing price the day before the
announcement. The proceeds will enable Telford Homes to take advantage of identified development opportunities and to achieve enhanced longer term growth in its output of new homes and, in turn, in reported profits and dividends paid to shareholders. The fundraise followed the acquisition of the regeneration business of United House Developments for £23.0m in September, providing the group with a substantial platform from which it can undertake further investment. Breedon Aggregates Plc (BREE.L, £736m), the UK’s largest aggregates company successfully completed a £41
AIM FURTHER EQUITY RAISINGS Money Raised (£m)
Number of Transactions
700.0
50
600.0 500.0
40
400.0
30
300.0
20
Technology; 6%
800.0
60
200.0
10
Real Estate; 0% Consumer Goods; 27%
Oil & Gas; 17%
Consumer Services; 2%
Mining; 9%
100.0 Nov 13 Dec 13 Jan 14 Feb 14 Mar 14 Apr 14 May 15 Jun 14 Jul 14 Aug 14 Sep 14 Oct 14 Nov 14 Dec 14 Jan 15 Feb 15 Mar 15 Apr 15 May 15 Jun 15 Jul 15 Aug 15 Sep 15 Oct 15 Nov 15
0
Financials; 10%
-
Industrials; 23%
18
Nigeria focussed Oil and Gas explorer Lekoil Ltd (LEK.L, £112m) completed a £30m placing to fund the acquisition of an indirect controlling interest (62%) in the offshore OPL 325 licence, as well as for other corporate and general working capital purposes. Since the placing Lekoil has also acquired Afren plc’s 22.86% stake of the OPL 310 licence, resulting in Lekoil holding a 17.14% participating interest and a 30% economic interest in OPL 310 obtained through a farm-in agreement signed in 2013 with Afren. The shares were placed at 24p, a 4.1% discount to the previous day’s closing price.
BREAKDOWN OF NOVEMBER FUNDS RAISED
Money Raised (£m)
Number of Transactions
70
million equity placing in November, contributing towards the acquisition of leading independent construction materials supplier Hope, for a total gross consideration of £336m on a cash- and debt-free basis. The Acquisition rationale was that Hope will provide Breedon with entry into the cement market and extend the Company’s UK geographic footprint, whilst adding a rail-linked quarry and a national network of depots. The placing price of 51.79p represented an approximate 12% discount to Breedon’s prior day closing price.
Information sourced from London Stock Exchange and Allenby Capital
Health Care; 6%
ANALYSIS OF NOVEMBER’S £232M SECONDARY ISSUES
19
COMPANY
SECTOR
SUBSECTOR
COUNTRY OF OPERATION
MONEY RAISED (£M)
Telford Homes Plc Breedon Aggregates Plc Lekoil Ltd NetScientific Plc Allergy Therepeutics Plc Keywords Studios Plc Bacanora Minerals Ltd Science In Sport Plc NetDimensions (Holdings) Ltd Haydale Graphene Industries Plc Arria NLG Plc President Energy Plc Tyratech Inc Metals Exploration Plc Scientific Digital Imaging Plc Phorm Corporation Ltd ECR Minerals Plc Alecto Minerals Plc FAIRFX Group Plc Mirada Plc Mosman Oil & Gas Ltd Gfinity Plc Asiamet Resources Ltd Bango Plc United Cacao Ltd SEZC Independent Resources Plc Union Jack Oil Plc BMR Mining Plc Northcote Energy Ltd FastForward Innovations Ltd Servision Plc Landore Resources Ltd W Resources Plc SolGold Plc Eastbridge Investments Plc Metminco Ltd Nu-Oil and Gas Plc
Consumer Goods Industrials Oil & Gas Financials Health Care Industrials Mining Consumer Goods Technology Basic Materials Technology Oil & Gas Basic Materials Mining Health Care Consumer Services Mining Mining Financials Consumer Services Oil & Gas Consumer Services Mining Technology Consumer Goods Oil & Gas Oil & Gas Mining Oil & Gas Financials Industrials Mining Mining Mining Real Estate Mining Oil & Gas
Home Construction Building Materials & Fixtures Exploration & Production Medical Technology Pharmaceuticals Business Support Services General Mining Food Products Software Specialty Chemicals Software Exploration & Production Specialty Chemicals General Mining Medical Equipment Media Agencies Gold Mining Gold Mining Consumer Finance Broadcasting & Entertainment Exploration & Production Broadcasting & Entertainment General Mining Internet Farming & Fishing Exploration & Production Exploration & Production Nonferrous Metals Exploration & Production Equity Investment Instruments Electrical Components & Equipment General Mining General Mining Gold Mining Real Estate Holding & Development General Mining Exploration & Production
UK UK Nigeria UK Germany Ireland Mexico UK China UK UK USA USA Philippines UK USA Australia Ethiopia UK UK New Zealand UK Indonesia UK Peru UK UK Zambia USA UK Israel Canada Spain Australia UK Peru Canada
50.00 40.80 30.05 18.14 11.48 10.45 8.84 8.66 7.20 6.00 4.50 3.24 3.16 3.00 2.51 2.08 1.80 1.78 1.65 1.50 1.47 1.00 1.00 0.85 0.83 0.80 0.80 0.75 0.75 0.66 0.63 0.63 0.60 0.51 0.50 0.50 0.44
Information sourced from London Stock Exchange, Allenby Capital, transactions shown ≥£100k
ANALYSIS OF NOVEMBER’S £232M SECONDARY ISSUES
20
COMPANY
SECTOR
SUBSECTOR
COUNTRY OF OPERATION
MONEY RAISED (£M)
URU Metals Ltd Treveria Plc Paternoster Resources Plc Metal Tiger Plc Savannah Resources Plc Scotgold Resources Ltd Golden Saint Resources Ltd Alba Mineral Resources Plc Milestone Group Plc PeerTV Plc Savannah Resources Plc
Mining Real Estate Financials Financials Mining Mining Mining Oil & Gas Consumer Services Technology Mining
Nonferrous Metals Real Estate Holding & Development Equity Investment Instruments Equity Investment Instruments General Mining Gold Mining General Mining Exploration & Production Broadcasting & Entertainment Telecommunications Equipment General Mining
Niger Germany UK UK Mozambique Australia Sierra Leone UK UK Israel Mozambique
0.40 0.37 0.30 0.21 0.18 0.18 0.17 0.16 0.15 0.11 0.10
Information sourced from London Stock Exchange, Allenby Capital, transactions shown ≥£100k
2015 AIM SECONDARY FUNDRAISINGS
There have been 488 secondary issues so far in 2015 (≥100k), equating to an average raise of £7.5m. The average issue size in FY 2014 amounted to £5.6m, in FY 2013 £5.1m, and in FY 2012 only £4.2m. The Real Estate sector remains the largest contributor to the £3,664m, having raised £812m (or 22.2%) of the amount. The sectors that have so far achieved the largest
average raises in 2015 are Real Estate (£36.9m), Telecommunications (£17.5m), and Industrials (£14.3m) sectors. With regard to number of issues, the Mining sector leads the way so far in 2015 with 151, or 31%, of total issues. The Oil & Gas and Financials sectors come in second and third place, having achieved 73 and 46 Secondary placings so far this year respectively. Companies with central operations based in the UK have raised £2,439m (or 67%) of the £3,664m, through 209 issues (with the average fundraise equating to £11.7m).
BREAKDOWN OF THE £3,664M RAISED IN 2015 YTD Alternative Energy; 1% Utilities; 0% Telecommunications; 2% Technology; 5% Real Estate; 22%
Basic Materials; 1%
Information sourced from London Stock Exchange and Allenby Capital
200 150 100
66
78 39
50
44 14
6
6
0 0.10-1
1-2
2-5
5-10
10-25
25-50
50-100
100
100
TRADING VOLUMES - Liquidity on AIM increased in October, Continued… ASOS Plc (ASC.L, £2,795m) was again the most traded stock on AIM in the month, with £322m of the Company’s shares traded in the month. So far this year, a total of £4.82bn of ASOS shares have exchanged hands – this amounts to 16.8% of the entire value of secondary trading on AIM. Telit Communications Plc (TEL.L, £238m) was one of the most liquid stocks in the month both in terms of value traded and relative to its market capitalisation. The Company, which operates in the Internet of Things (“IoT”) arena announced supply agreements in the month with two tierone automotive suppliers with expected revenues of $33m. These agreements are the 5th and 6th such supply agreements Telit has secured over the past 12 months representing in aggregate up to $220 million of revenues over the life of the agreements. DX (Group) Plc (DX.L, £43m) is an independent parcels, mail and logistics operator. DX Group enjoyed high levels of trading in the month albeit for the wrong reasons. In November the Company announced a severe profit warning which led to the shares falling c.75%. The business model is under pressure from, inter alia, increased cost base pressures arising from driver resourcing issues where there is an industry wide shortage. The announcement stated that profits for the period ending 30 June 2016 will be significantly below current market forecasts.
30
Information sourced from London Stock Exchange and Allenby Capital
NOVEMBER’S MOST TRADED STOCKS BY VALUE MOST TRADED AIM STOCK
TRADING VALUE (£M)
MKT CAP (£M)
VALUE/MKT CAP
ASOS Plc
322.8
2,794.9
11.5%
Paysafe Group Plc
320.1
1,721.4
18.6%
Telit Communications Plc
99.9
238.4
41.9%
Abcam Plc
59.7
1,142.9
5.2%
Plus500 Ltd
51.0
467.9
10.9%
Scapa Group Plc
44.5
298.1
14.9%
Telford Homes Plc
40.5
279.0
14.5%
Redde Plc
37.3
502.4
7.4%
Watchstone Group Plc
37.2
442.1
8.4%
CVS Group Plc
36.9
445.9
8.3%
NOVEMBER’S MOST LIQUID STOCKS ON A RELATIVE BASIS MOST TRADED AIM STOCK
TRADING VALUE (£M)
MKT CAP (£M)
VALUE/MKT CAP
DX (Group) Plc
20.8
43.1
48.2%
Telit Communications Plc
99.9
238.4
41.9%
Mosman Oil & Gas Ltd
2.1
6.7
31.0%
88 Energy Ltd
3.7
12.2
30.3%
Grafenia Plc
1.6
5.8
27.3%
IS Solutions Plc
9.4
36.1
25.9%
FastJet Plc
8.4
40.0
21.1%
African Potash Ltd
2.6
12.2
20.9%
Paysafe Group Plc
320.1
1,721.4
18.6%
Journey Group Plc
4.3
24.5
17.7%
TRADING VOLUMES - Historical Trading on AIM
The market is still a long way from its highs of 2007, when £7.33bn was traded in March of that year, with an average trade size during the month of £21,285. In November 2015, £2.40bn was traded, with an average trade size of £5,211.
8,000
Monthly turnover value £m
7,000 6,000 5,000 4,000 3,000 2,000 1,000 0
BARGAINS BY NUMBER AND VALUE
35,000 30,000 25,000 20,000 15,000 10,000 5,000 -
Average daily number of bargains (LHS)
Average value per bargain (£) (RHS)
Jan-01 May-01 Sep-01 Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15
A combination of factors appears to have increased retail appetite for investing in AIM over the past 24 months. The improvement in the UK and indeed the global economy and the increased appetite amongst retail investors for direct equity investment have been of significance. The qualification of AIM stocks for inclusion in tax free ISA wrappers, implemented last year, appears to have spurred interest in the junior equity market; and this appetite seems to have been boosted by the increase in ISA allowances in the tax year 2014/15 from £11,520 to £15,000.
TOTAL TRADING TURNOVER VALUE
Jan-01 May-01 Sep-01 Jan-02 May-02 Sep-02 Jan-03 May-03 Sep-03 Jan-04 May-04 Sep-04 Jan-05 May-05 Sep-05 Jan-06 May-06 Sep-06 Jan-07 May-07 Sep-07 Jan-08 May-08 Sep-08 Jan-09 May-09 Sep-09 Jan-10 May-10 Sep-10 Jan-11 May-11 Sep-11 Jan-12 May-12 Sep-12 Jan-13 May-13 Sep-13 Jan-14 May-14 Sep-14 Jan-15 May-15 Sep-15
Trading volumes have picked up steadily since the lows of December 2012. In that month, the average daily number of bargains struck on AIM amounted to 13,996. In November 2015, the average daily volume was 21,909, an increase of 57% on the December 2012 total.
31
Information sourced from London Stock Exchange and Allenby Capital
25,000 20,000 15,000 10,000 5,000 -
AIM MARKET OVERVIEW
32
AN ANALYSIS OF AIM’S CONSTITUENTS We feel that AIM is going through a cleansing process where small companies are leaving the market and being replaced by larger companies of higher quality. The average market capitalisation of AIM companies is currently £70.5m. As at 30 November 2015, 180 AIM constituents exceeded the £100m valuation mark. Seven companies were valued at greater than £1bn. Over the past 24 months, AIM has slowly transformed into becoming more of a platform for UK based companies, as investors have shied away from Natural
Resources stocks (typically not located in the UK), and similarly the recovery of the UK economy has excelled economies of others. 33% of new joiners to the market in 2012 were headquartered in the UK; in 2013, this rose to 57%; and for each of 2014 and 2015 this figure has been 67%. Nevertheless, the market still hosts businesses operating across a vast range of geographies. 98 countries in total host the central operations of at least one AIM company, while many more play host to non-core operations.
AVERAGE MKT CAP SIZE 80
Average Market Cap (£m)
70 60 50 40 30 20 10
Alternative Energy; 0%
Information sourced from London Stock Exchange and Allenby Capital
Jan-15
Jan-13
Jan-12
Jan-11
Jan-10
Jan-09
Jan-08
Jan-07
Jan-06
Jan-05
Jan-14
15
7
500-1,000
> 1,000
Health Care; 14%
Jan-04
Jan-03
48
50 0
0-2
Industrials; 17%
110
101
Market Cap (£m)
250-500
Financials; 17%
131
100-250
Mining; 4%
100
145
126
50-100
Oil & Gas; 5%
140
150
25-50
Consumer Services; 16%
5-10
Real Estate; 6%
198
200
10-25
Consumer Goods; 7%
Technology; 10%
33
250
Basic Materials; 1%
Number of companies
Utilities; 1% Telecoms; 2%
AIM AVERAGE MKT CAP OF £70.5M, MEDIAN MKT CAP OF £19.8M
2-5
MARKET CONSTITUENTS BY SECTOR (MKT CAP)
Jan-02
Jan-01
0
AIM an international small cap market
Country of Incorporation
34
Information sourced from London Stock Exchange and Allenby Capital
2006 1,634 304 1330
2007 1,694 347 1347
2008 1,550 317 1233
2009 1,293 241 1052
2010 1,195 228 967
2011 1,143 225 918
2012 1,096 225 871
UK
2013 1,092 502 590
2014 1,104 481 623
2015 1,049 439 610
BUT 42% OF COMPANIES HAVE THEIR MAIN OPERATIONS OVERSEAS
48
37
33
30
27
22
21
18
12
10
9
7
Location of assets
7
6 Isle of Man
65
Middle East
87
Channel Islands
610
Caribbean
700 600 500 400 300 200 100 0
Canada
800 732 700 600 500 400 300 200 46 37 35 33 33 27 24 15 12 12 7 6 5 5 2 2 2 2 2 2 2 1 1 1 1 1 1 100 0 UK Jersey Isle of Man British Virgin Islands Cayman Islands Guernsey Eire Australia Canada Bermuda USA Israel Cyprus Singapore Gibraltar Hong Kong Belize (British Honduras) Falkand Islands Luxembourg South Africa Germany Finland Netherlands Bangladesh India Malaysia Malta Zambia
Number of companies
30% OF COMPANIES ARE INCORPORATED OUTSIDE OF THE UK
2005 1,399 220 1,179
Israel
2004 1021 116 905
Central and Eastern Europe
2003 754 60 694
India & Bangladesh
2002 704 50 654
Australia
2001 629 42 587
Russia and CIS
2000 524 31 493
China
1999 347 22 325
Latin America
1998 312 21 291
Asia Pacific
1997 308 22 286
USA
1996 252 17 235
Western Europe
1995 121 3 118
Africa
Total International UK
International
UK
1,800 1,600 1,400 1,200 1,000 800 600 400 200 0
Number of companies
Number of companies
TOTAL COMPANIES DOWN 38% FROM THE 2007 PEAK
AIM’S LARGEST COMPANY
MARKET CAPITALISATION £M
MARKET CAPITALISATION £M
ASOS Plc
Apparel Retailers
UK
2,795
New Europe Property Investments Plc
Equity Investment Instruments
Romania
2,328
Paysafe Group Plc
Financial Administration
UK
1,721
Hutchison China MediTech Ltd
Pharmaceuticals
China
1,509
GW Pharmaceuticals Plc
Pharmaceuticals
UK
1,194
Abcam Plc
Biotechnology
UK
1,143
James Halstead Plc
Building Materials & Fixtures
UK
1,014
Market Tech Holdings Ltd
Real Estate Holding & Development
UK
931
Clinigen Group Plc
Drug Retailers
UK
757
Dart Group Plc
Airlines
UK
748
Breedon Aggregates Plc
Building Materials & Fixtures
UK
736
Origin Enterprises Plc
Farming & Fishing
Ireland
715
Emis Group Plc
Computer Services
UK
682
Fevertree Drinks Plc
Soft Drinks
UK
663
Imperial Innovations Group Plc
Specialty Finance
UK
657
NewRiver Retail Ltd
Retail REITs
UK
653
Dalata Hotel Group Plc
Hotels
Ireland
631
Mulberry Group Plc
Clothing & Accessories
UK
552
Secure Trust Bank Plc
Banks
UK
540
Young & Co.'s Brewery Plc
Restaurants & Bars
UK
521
Nichols Plc
Soft Drinks
UK
509
Redde Plc
Specialty Finance
UK
502
Secure Income REIT Plc
Diversified REITs
UK
487
4D Pharma Plc
Pharmaceuticals
UK
482
Datatec (UK) Ltd
Computer Services
South Africa
470
Priced as of 09/12/2015
35
SUBSECTOR
Information sourced from London Stock Exchange and Allenby Capital
ALLENBY CAPITAL OVERVIEW
36
ALLENBY CAPITAL an AIM nomad & broker with an international client base UNITED KINGDOM
37
NORWAY Mining (Phosphate)
Nordic Energy**
RUSSIA Oil and Gas
Urals Energy
Oil & Gas
Asset Managers
Arria NLG
Software
Biome Technologies
Chemicals
ISRAEL
Boxhill Technologies
Gaming
MTI Wireless Edge
Technology
Caledonian Trust
UK Property
Servision
CCTV Security Systems
Cellcast
Media
Cluff Natural Resources*
Coal Gasification
Eco City Vehicles
Transportation
Fulham Shore
Consumer Discretionary
Hunter Resources
Investment Company (Nat. Res.)
Infrastrata
Oil & Gas
K&C REIT
Property
MYANMAR
Palace Capital
Commercial Property
Paragon Resources
Investment Company
Myanmar Investments Intl.*
Plastics Capital*
Chemicals
Powerhouse Energy
Renewables
MALAYSIA
Reach4Entertainment
Media & Entertainment
CSF Group
Data centres
Macromac
Technology
SyQic
TMT
Mayair
Support Services
Totally
Software
Medilink Global UK
Support Services
Trafalgar New Homes
Construction
MobilityOne
Support Services
Treveria
Investment Company
Tricor
Investment Company
Resource Holding Management
International Media
TyraTech*
Specialty Chemicals
Vela Technologies
Investment Company
Xplorer***
Oil & Gas
* Broker only client ** ISDX Broker *** Main Market listed Information sourced from London Stock Exchange and Allenby Capital
Kodal Minerals
DENMARK
AFH Financial Group
DUBAI Tejoori
Investment Company
HONG KONG / CHINA
NORTH AMERICA
GREECE
Atlantic Coal
Natural Resources (Coal)
Halosource*
Specialty Chemicals
Rose Petroleum
Oil & Gas
Strategic Minerals
Mining (Iron Ore)
TekCapital
Specialty Finance
CDialogues
Mobile Marketing
SOUTH EAST ASIA AAA
LED Int. Holdings
Technology
MoneySwap
FX Payment systems
Investment Company
AUSTRALIA Cap-XX
Technology
INDIA Investment Company
DQ Entertainment
Media
Mortice
Security
ALLENBY CAPITAL TRANSACTION RECORD
38
CLIENT
SECTOR
LOCATION
TRANSACTION
DATE
ALLENBY CAPITAL’S ROLE
AFH Financial Group
Financial Services
UK
£6.5m fundraise
Dec-15
Nomad & Broker
R4E
Media & Entertainment
US
£4.0m fundraise
Nov-15
Nomad & Broker
Tyratech
Speciality Chemicals
UK/USA
£3.2m fundraise
Nov-15
Broker
Totally
Healthcare IT
UK
£1.05m fundraise
Sep-15
Nomad & Broker
K&C REIT
Property
UK
IPO & £3.6m fundraise
Jul-15
Nomad & Broker
Cyan Group
Technology
UK
£4.6m fundraise
Jun-15
Nomad & Broker
Character Group
Leisure
UK
£6.4m Director placing
Jun-15
Placing Agent
Palace Capital
Property
UK
Acquisition & £20m fundraise
May-15
Nomad & Joint Broker
AFH Financial Group
Financial Services
UK
£0.75m fundraise
May-15
Nomad & Broker
Rose Petroleum
Oil & Gas
USA
£3.1m fundraise
May-15
Nomad & Broker
CAP-XX
Technology
Australia
£1.0m fundraise
May-15
Nomad & Broker
MayAir
Air Filtration
Singapore
£16.2m fundraise
May-15
Nomad
Tekcapital
IP & Tech transfer
USA
£2.2m fundraise
May-15
Nomad & Joint Broker
The Fulham Shore
Consumer Discretionary
UK
£4.75m fundraise
Mar-15
Nomad & Broker
Cluff Natural Resources
Natural Resources
UK
£2.2m fundraise
Mar-15
Joint Broker
CAP-XX
Technology
Australia
£1.2m fundraise
Mar-15
Joint Broker
Rose Petroleum
Oil & Gas
USA
£3.5m fundraise
Dec-14
Nomad & Broker
Plastics Capital
Industrials
UK
£5.0m fundraise
Nov-14
Joint Broker
The Fulham Shore
Consumer Discretionary
UK
ISDX to AIM & £1.6m fundraise
Oct-14
Nomad & Broker
Palace Capital
Property
UK
Acquisition & £20m fundraise
Aug-14
Nomad & Joint Broker
SyQic
IPTV Media company
UK
Acquisition & £1.9m fundraise
Aug-14
Nomad & Broker
RapidCloud International
Cloud Computing
Malaysia
Acquisition & £0.6m fundraise
Jul-14
Nomad & Broker
TyraTech
Speciality Chemicals
UK/USA
£3.5m fundraise
Jul-14
Broker
LED International Hlds Ltd
Technology
Hong Kong
£2.5m fundraise
Jul-14
Nomad & Broker
Hunter Resources
Oil & Gas
UK
RTO & £1.0m fundraise
Jul-14
Nomad & Broker
Manroy Plc
Engineering
UK
£16m cash offer
Jul-14
Nomad & Broker
Rose Petroleum
Oil & Gas
USA
£6.5m fundraise
Jun-14
Nomad & Broker
AFH Financial Group
Financial Services
UK
IPO & £3m fundraise
Jun-14
Nomad & Broker
Sula Iron & Gold
Mining
Sierra Leone
£2.1m fundraise
Mar-14
Joint Broker
eProp
Property
UK
£4.5m fundraise
Mar-14
Placing Agent
TyraTech
Speciality Chemicals
USA
£1.9m fundraise
Feb-14
Broker
Kodal Minerals
Mining
Norway
IPO & £1m fundraise
Dec-13
Nomad
Information sourced from London Stock Exchange and Allenby Capital
ALLENBY CAPITAL TRANSACTION RECORD Continued...
39
CLIENT
SECTOR
LOCATION
TRANSACTION
DATE
ALLENBY CAPITAL’S ROLE
Arria
Technology
UK
AIM Introduction
Dec-13
Nomad & Broker
SyQic
IPTV Media company
UK
IPO & £3.2m fundraise
Dec-13
Nomad & Broker
Palace Capital
Property
UK
RTO & £23.5m fundraise
Oct-13
Nomad & Joint Broker
Bubbleology
Food & Drink
UK
£0.5m private fundraise
Oct-13
Placing Agent
Totally
Healthcare IT
UK
£0.6m fundraise
Sep-13
Nomad & Joint Broker
Macromac
Technology & Software
Malaysia
IPO & £0.5m fundraise
Sep-13
Nomad & Broker
RapidCloud International
Cloud Computing
Malaysia
IPO & £1.0m fundraise
Aug-13
Nomad & Broker
Trafalgar New Homes
Construction
UK
ISDX to AIM & £0.3m fundraise
Jul-13
Nomad & Broker
Xplorer
Oil & Gas
UK
IPO & £1.0m fundraise
Jul-13
Financial Advisor & Broker
Myanmar Investments Int. Ltd.
Investment Company
Myanmar
IPO & £3.4m fundraise
Jun-13
Broker
AAA
Investment Company
S.E. Asia
IPO & £3.6m fundraise
May-13
Nomad & Broker
Evolve Capital
Investment Company
UK
£1m Mandatory cash offer
Mar-13
Rule 3 Advisor
Sefton Resources
Natural Resources
USA
£0.75m fundraise
Feb-13
Nomad
The Fulham Shore
Consumer Discretionary
UK
ISDX Introduction
Feb-13
Corporate Advisor & Broker
IPSO Ventures
Investment Company
UK
Demerger & £0.4m subscription
Feb-13
Nomad & Broker
Camkids
Retail
China
IPO & £6.5m fundraise
Dec-12
Nomad & Broker
Sefton Resources
Oil & Gas
USA
£0.75m fundraise
Dec-12
Nomad
Evolve
Investment Company
UK
£1.0m fundraise
Sep-10
Nomad & Broker
Atlantic Coal
Natural Resources
US
£1.7m fundraise
Aug-10
Nomad & Broker
IPSO Ventures
Investment Company
UK
£0.3m fundraise
Jul-10
Nomad and Broker
Daniel Stewart
Financial Services
UK
£2.0m fundraise
Jul-10
Placing Agent
Mercator Gold
Natural Resources
Global
£1.2m fundraise
May-10
Sub - Agent
Vyke
Telecommunications
UK
£4.2m fundraise
Apr-10
Nomad and Joint Broker
Plant Impact
Agrochemicals
UK
£2.0m fundraise
Mar-10
Nomad & Lead Broker
Strategic Natural Resources
Natural Resources
South Africa
£2.9m fundraise
Mar-10
Nomad & Broker
Atlantic Coal
Natural Resources
US
£0.5m fundraise
Feb-10
Nomad & Broker
Ultima Networks
Software, Electronics, Environmental
UK
£1.0m fundraise
Dec-09
Nomad & Broker
AFC Energy
Fuel cells
UK
£2.15m fundraise
Dec-09
Joint Broker
Ultima Networks
Software, Electronics, Environmental
UK
£1.0m fundraise
Dec-09
Nomad & Broker
AFC Energy
Fuel cells
UK
£2.15m fundraise
Dec-09
Joint Broker
Information sourced from London Stock Exchange and Allenby Capital
ALLENBY CAPITAL Contact details
40
]]
Nick Naylor Chief Executive 0203-328-5661
[email protected]
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Matt Butlin Head of Equities 0203-328-5666
[email protected]
]]
Graham Bell Head of Sales 0203-328-5659
[email protected]
]]
Nick Athanas Corporate Finance 0203-328-5662
[email protected]
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Peter Dupont Research 0203-002-2078
[email protected]
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[email protected]
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[email protected]
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Alex Brearley Corporate Finance 0203-328-5671
[email protected]
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[email protected]
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[email protected]
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[email protected]
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[email protected]
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[email protected]
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[email protected]
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Nick Harriss Corporate Finance 0203-328-5658
[email protected]
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[email protected]
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[email protected]
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[email protected]
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[email protected]
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[email protected]
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John Depasquale Corporate Finance 0203-328-5657
[email protected]
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Ian Jermin Research 0203-328-5664
[email protected]
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[email protected]
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[email protected]
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Liz Kirchner Corporate Finance 0207-167-6434
[email protected]
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[email protected]
ALLENBY CAPITAL Important disclaimer This document is issued by Allenby Capital Limited (Incorporated in England No.6706681), which is authorised and regulated in the United Kingdom by the Financial Conduct Authority (“FCA”) for designated investment business, (Reg No. 489795) and is a member of the London Stock Exchange. This document is for information purposes only and should not be regarded as an offer or solicitation to buy the securities or other instruments mentioned in it. It or any part of it do not form the basis of and should not be relied upon in connection with any contract. Allenby Capital Limited shall not be liable for any direct or indirect damages, including lost profits arising in any way from the information contained in this material. This material is for the use of intended recipients only and only for distribution to professional and institutional investors, i.e. persons who are authorised persons or exempted persons within the meaning of the Financial Services and Markets Act 2000 of the United Kingdom, or persons who have been categorised as professional customers or eligible counterparties under the rules of the FSA. It is not intended for retail customers. Allenby Capital Limited uses reasonable efforts to obtain information from sources which it believes to be reliable but the contents of this document have been
41
prepared without any substantive analysis being undertaken into the companies concerned or their securities and it has not been independently verified. No representation or warranty, either express or implied, is made nor responsibility of any kind is accepted by Allenby Capital Limited, its directors or employees either as to the accuracy or completeness of any information stated in this document. Opinions expressed are our current opinions as of the date appearing on this material only. The information and opinions are provided for the benefit of Allenby Capital Limited clients as at the date of this document and are subject to change without notice. This document is being supplied to you solely for your information and may not be reproduced, re-distributed or passed to any other person or published in whole or in part for any purpose. The material in this document is not intended for distribution or use outside the European Economic Area. This material is not directed at you if Allenby Capital Limited is prohibited or restricted by any legislation or regulation in any jurisdiction from making it available to you and persons into whose possession this material comes should inform themselves about, and observe, any such restrictions.
By accepting this document you agree that you have read the above disclaimer and to be bound by its limitations and/or restrictions. All investments are speculative and are liable to fluctuate in value. It should not be assumed that the value of investments will always rise. Past performance will not necessarily be repeated and is no guarantee of success.
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44
Information sourced from London Stock Exchange and Allenby Capital