Small-cap IPOs can be likened to London’s buses: long waits and then multiple shows up simultaneously.
The previous year saw a decline in listings, large and small alike. 2023 followed suit.
EY’s recent research indicates a 31% decrease in the number of companies joining AIM in the first half of 2023 compared to the latter part of 2022. The underlying cause? It appears to be the shift towards a cautious investing approach, termed by experts as a “risk-off” attitude.
Factors like the Ukraine conflict, escalating inflation, and consecutive interest rate increments have made investors more reserved. This is evident in the secondary market, where smaller firms found it challenging to secure new funding. Most recent financial rounds barely exceeded £1.5 million.
However, 2023 did have its outliers. Premier African Minerals, for instance, managed to secure £4 million in new funding. The emerging IPOs of Tan Delta Systems, Tribe Technology, and RTOP hint at a potential revival in the growth sector.
In the meantime, AIM All-Share seemed to stagnate during the summer period in the Square Mile, with its index barely changing at 734.05 points. This was in contrast to FTSE 100, which saw an increase of 1.35%.
Plexus Holdings stood out in the oil services sector, witnessing a 72% increase due to a contract upgrade. Orcadian Energy and SEEEN also made notable gains, with the latter being influenced by a director’s share purchase. Additionally, Jubilee Metals enjoyed a 17% rise after announcing positive developments in South Africa and Zambia.
On the flip side, Fulcrum Utility Services faced a significant setback, losing nearly three-quarters of its value and announcing its AIM delisting due to challenges in raising equity and managing associated costs.
Such occurrences highlight AIM’s decreasing efficacy in aiding growth companies, as its listing numbers have declined significantly from its prime.
Lastly, BiVictriX Therapeutics recently gained US patent protection for BVX001, a drug aiming to target cancer more efficiently.
In a chat with Proactive’s Thomas Warner, CEO Tiffany Thorn hinted at industry enthusiasm for BiVictriX’s innovative approach. Thorn emphasized the company’s ongoing success and interactions with potential partners. By week’s end, their stock rose by 26% to 15.1p.
