Listing on AIM

The Nominated Advisor or “Nomad” acts as the sponsor or representative of the company who will be listed on AIM. The Nomad prepares the prospectus and gets the issuer admitted for trading on AIM. The Nomad also assists the company is raising its initial capital, the sweet spot being the $10MM and $20MM US range. Nomads may also (through its brokerage and research departments) provide market making and research for the issuer’s stock. The contractual arrangements and relationship between the issuer and its Nomad extends well beyond the IPO. Unlike its US counterparts, the Nomad is still active after the initial listing on AIM so that a small issuer does not end up being a stock market “orphan,” as is often the case in the U.S.

On February 20, 2007 the Aim instituted some new rules for Nomads and companies listed on the AIM exchange. The rules were implemented to give further guidance and clarity to regulatory issues concerning disclosure requirements. Although the changes to AIM rules are evolutionary rather than revolutionary, Nomads should not under-estimate the Exchange’s emphasis on the responsibility of Nomads for preserving the reputation and integrity of AIM.

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