“AIM is particularly attractive to foreign firms... because its requirements are a bit more flexible than the LSE main markets.
KUALA LUMPUR: At least four Malaysian companies are in discussions to list on the Alternative Investment Market (AIM), the alternative listing platform of the London Stock Exchange (LSE), next year.
Capital markets partner at global accountancy firm Crowe Clark Whitehill LLP (CCW) Robin Stevens said these firms were interested to list on AIM in a bid to raise their company profiles.
“To date, we have guided 65 Asian and China-based firms to list on the LSE. Of the 65, 18 were Malaysian firms. And of the 18, 16 have opted for AIM rather than the main markets,” he said at the briefing of London Capital Markets and Mergers and Acquisitions (M&As), here, yesterday.
“We are in the final steps of listing a Malaysian firm on AIM right now. I believe that this will be completed within the year itself.
“We are also speaking to several other Malaysian firms interested to list on AIM and we believe at least four of them would be listed next year,” he said.
Stevens indicated that two of these firms were from the technology sector while the others were from the telecommunications and healthcare sectors.
He said there was interest to list on AIM because it was relatively more relaxed than the main markets of the LSE.
“AIM is particularly attractive for foreign firms looking to list in London because its requirements are bit more flexible than the LSE main markets and the entry cost is also cheaper.
“We have seen some of our clients transition from AIM to the main markets when they have the criteria to do so, but most are comfortable on AIM.”
Stevens did not disregard the potential disruption Brexit would cause, which was expected in April 2019, but remained hopeful that London would still be attractive to potential investors.
He said there were usually two reasons why Malaysian firms wanted to list in London and on AIM.
“By listing in London, these firms will be able to raise their profiles as well cash for their next business strategy, be it M&As or to grow organically.
“There is always the uncertainty of what will happen post-Brexit, but I am positive that London will still remain the gateway for foreign investors or firms looking to expand in Europe because we have a very comprehensive system and talent in place, compared with the rest of Europe,” said Stevens.
AIM enables smaller, less viable companies to float shares in a more flexible regulatory system than that of the LSE main markets.
CCW’s past Malaysian clients that are now on AIM include oil field inspector Velosi Group (listed in 2006), tech giant Fusionex International Ltd (2012), mobile entertainment service provider SyQic Plc (2013) and renewable energy provider Green & Smart Plc (2016). Lidiana Rosli