THE Alternative Investment Market (AIM) is to mount a push into continental Europe to persuade thousands of small and medium-sized companies to list in London.

The market, owned and operated by the London Stock Exchange (LSE) but less heavily regulated than the full list, is arranging two roadshows to capitals on the Continent before Christmas to reach investors, firms and financial professionals. AIM is the only exchange that targets growth stocks in Europe, but of the more than 200 foreign companies that have listed in London, only 38 are from the Continent.

At the risk capital summit, which opened in London yesterday, Chris Gibson-Smith, the LSE chairman, said that AIM was talking to investors, advisers and intermediaries with a view to accommodating the demand among small and medium-sized companies across Europe for equity growth capital.

One of the constraints on economic growth in continental economies, analysts believe, is the lack of access to the sort of funds more freely available in Britain. AIM, which this summer celebrated its tenth anniversary, has been a conspicuous success in providing such funds to growing businesses.

Research published yesterday to mark the start of the summit, which is being jointly hosted by the Government as part of Britain’s presidency of the European Union, showed the potential economic benefits of bridging the continental “equity gap”. Oxford Analytica, the specialist consultant, estimated that the benefit of a pan-European equity market for small and medium-sized companies equated to a range of 0.3 to 0.6 per cent of EU GDP. This is equivalent to between €28 billion (£19 billion) and €57 billion.

Mr Gibson-Smith said: “We believe AIM’s destiny is to provide Europe with its growth market.”

Martin Graham, the LSE’s director of market services and head of AIM, said: “(This) is massively in the interests of Europe. People are looking for the right type of capital, not the physical location of a stock market.”

AIM previously has offered a “fast-track” listing procedure requiring minimum documentation for companies wanting to switch from another exchange or gain a dual listing in London.

TRADING UP

• Almost £20 billion has been raised by AIM companies since the market opened its doors in 1995
• In all, more than 2,000 companies have joined AIM. There are presently 1,318 quoted there
• In 2004, there were 355 new entrants, raising £2.78 billion in total
• Another 389 firms have joined this year, raising a total of £3.39 billion
• AIM has £19.3 billion in institutional investment

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