Expectation of more Aim IPOS by tech businesses

The average enterprise value of tech companies on the Alternative Investment Market (Aim) has grown by a quarter since June and by half for the full year to reach £111 million, a new study has found.

According to the latest Tech Barometer from accounting and advisory firm Moore Stephens, the continued growth in the value of these stocks has prompted a resurgence of tech IPOS, with seven in the second half of last year, raising £114m, from just one in the prior six months.

Moore Stephens director Dougie Hunter said: “Six months ago we predicted an increase in IPO activity and this has certainly been the case. In total, more than £1.2 billion was raised by technology companies on Aim throughout 2017 – it really is a booming market.” He also cited companies being able to raise “significant” levels of secondary funds as helping drive the IPO jump.

“The Aim market clearly remains an attractive option for tech businesses. Over the next six months, we think the trend for IPOS will continue,” he added.