It is now more than 15 years since Griffin Mining became the first Chinese business to be admitted to AIM in 1997. Since then more than 90 companies with an underlying Chinese business have joined AIM. There was a peak of 31 Chinese IPOs on AIM in 2006, reflecting general trading conditions, and a high of 67 Chinese businesses on AIM in 2008. Reflecting the downturn, the number dropped to 43 in 2011.
However, the trend appears to be reversing, as the total number of Chinese AIM listed companies increased to a reported 48 at the end of 2012 – the result of 5 de-listings and 10 IPOs during 2012. Edwin Coe is delighted to have advised on 3 (30%) of these IPOs.
The 48 Chinese AIM listed companies were reported to have an aggregate market capitalisation of £2.76 billion and an average market capitalisation of £57.50 million (most AIM companies have a market capitalisation of less than £25 million). £42.45 million is reported to have been raised for IPOs with a further £7.92 million from secondary fundraisings in 2012. Although the aggregate market capitalisation of Chinese companies at the end of 2012 represents a decline of 19.3% over 2011, the increased number of admissions is encouraging.
We have seen continuing interest from businesses in the Far East in obtaining a listing in London, and we are currently beginning work on a new Chinese AIM float. As our team has been involved in nine successful AIM flotations of Chinese businesses, we are looking forward to capitalising on this experience and working on further transactions.
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