Seneca Partners, through our EIS funds, was an active supporter of AIM IPOs throughout 2014. The high level of activity on the AIM market continued in 2014 with 82 IPOs raising £2.8 billion. More capital was raised on AIM for IPOs during 2014 than in 2011, 2012 and 2013 combined.
The average and median AIM IPO during 2014 raised the equivalent of £34 million and £12 million, respectively, with 72% of the IPOs raising between £3 million and £100 million. 27 of the 82 IPOs included meaningful liquidity events for selling shareholders.
47 of the 82 companies generated significant revenues and the median trailing pre-money revenue multiple was 1.82. 28 of the 82 companies earned significant profits and the median trailing pre-money P/E ratio and EBITDA multiple was 17.77 and 10.24, respectively.
Consumer services’ businesses accounted for 26% of the AIM IPOs during 2014, although, it is interesting to note the significant technology component; more than half had as their main strategy the engagement of consumers online and/or via mobile.
Financial companies accounted for 15%, healthcare and industrials each accounted for 12%, pure technology companies accounted for 10%, consumer goods for 8% and there were four telecommunications related IPOs on AIM during 2014, accounting for 5% of the total.
In 2014 Seneca Partners supported the AIM IPOs of OptiBiotix Health, Collagen Solutions, Premaitha Health and PTSG. Already in 2015 Seneca Partners has supported the IPO of Redx Pharma and has a strong pipeline of future IPO opportunities.
Contact: Chris Summerscales firstname.lastname@example.org
The ideas and conclusions in this column are the author’s own and do not necessarily reflect the views of Seneca Partners. They are for general interest only and should not be taken as an invitation to purchase or sell any investment.