Three ideas: why to list on PLUS not AIM
Looking to float but wary of getting lost on AIM? PLUS could be the answer
The PLUS market is increasingly replacing AIM as the preferred
destination for small, fast-growth companies looking to raise
equity finance, gain an independent valuation and enhance their
profile. Here's why:
The admission process for PLUS averages between £100,000 and
£150,000 so offers considerable savings on an AIM listing, which
rarely costs under £500,000 and can easily mount to £1m. Ongoing
advisor, regulation costs and fees are also substantially
There's less regulation
PLUS positions itself as the market for small companies that is
light on regulation and comparatively low-cost - so, as you'd
expect, its listing process is far less onerous than an AIM IPO.
You don't have to raise funds immediately, either: you can join
PLUS simply to raise profile or to get an independent value for
your company. This only requires an admission announcement and
limited application documentation filed by a PLUS corporate
Even if you are looking to raise funds you won't need to file a
full prospectus or admission document (required on AIM and where
the time and costs build up) if you're offering a private placement
to fewer than 100 people.
You'll be a big fish in a small pond
Five years ago, AIM's main sales pitch was that it cost less
than a main LSE listing and was the alternative market where small
companies would get more profile. Now AIM's a pretty damn pond
packed itself, PLUS is where small companies stand a better chance
of making a splash.
Compared to AIM's 1,500-plus companies, just 201 companies are
currently quoted on PLUS. Those raising cash typically close
between £1-2m and on average have a market cap of £20m.
Okay, so PLUS doesn't have the liquidity or profile of AIM but
since becoming a 'Recognised Investment Exchange' in 2007, its
stock has reason considerably with investors.
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