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If you’re an ambitious private company, going public may be on your radar. When companies reach an inflection point — whether that’s needing capital, wanting to raise profile, or giving early shareholders a route to liquidity — they will doubtless be considering the significant strategic decision to list their business. 

Since its launch in 1995, AIM, London’s Alternative Investment Market, has been the entry point for thousands of UK and international growth companies. So much so that, in the five years to 2025, AIM accounted for 53% of all capital raised across European growth markets.

Here, we explore what AIM is, why companies choose to list on it and what the market looks like currently.

What is AIM?

AIM is the London Stock Exchange’s market for smaller and growth companies. It’s designed to be more flexible and accessible than the Main Market, while still providing access to institutional and retail investors

Unlike the Main Market, AIM companies are admitted to trading on the London Stock Exchange rather than being admitted to the Financial Conduct Authority’s (FCA) Official List. 

This means they are technically considered “traded” rather than officially “listed” under UK regulatory rules, meaning a slightly lighter regulatory framework and lower entry barriers which may be appealing to some businesses.

AIM listing requirements are also slightly lighter touch than the Main Market: there is no minimum market capitalisation, no minimum public float, and no requirement to have traded for a set period. Maybe this goes some way to explaining why, of 23 UK listings in 2025, nine were on the Main Market and 14 on AIM.

Why Companies Choose AIM

There are four headline AIM IPO benefits that lead companies to choose to list on AIM:

1. Access to capital — both at IPO and through secondary fundraises. AIM is “designed to provide early access to capital for growth and founder-led companies”, and provides access to a deep pool of institutional investors specifically focused on growth companies, as well as retail investors via platforms and wealth managers. 
2. Profile and credibility — being a publicly traded company changes how customers, suppliers, partners, and potential acquirees perceive you. The potential to uplift your profile is real and often underestimated. 
3. Ability to use shares as currency — AIM-quoted shares can be used to make acquisitions, incentivise talent through option schemes, and reward long-standing shareholders with liquidity. 
4. A market designed for growth, not just size — AIM’s rules are built around companies that are building, rather than those that have already arrived.

The Tax Dimension — Worth Knowing

Aside from the above, AIM has a distinct advantage that often gets overlooked in early conversations: the tax treatment for investors.

Because AIM shares qualify for the EIS (Enterprise Investment Scheme), investors can benefit from income tax relief, Capital Gains Tax (CGT) exemption and loss relief, all of which can make it easier for companies to attract investment at AIM level.

AIM shares also qualify for Business Property Relief (BPR), making them attractive for investors managing inheritance tax planning.

What the Market Looks Like Right Now

While AIM has, since its 1995 inception, played “a vital role in backing smaller, high-growth companies by providing ambitious businesses with the access to capital they need to scale”, it hasn’t been a linear growth pattern.

Post-2021, AIM went through a quieter period, with IPO volumes running below historical levels and a gradual reduction in the number of listed companies. In the first five months of 2025, though, AIM raised £111.8m, almost matching the total for all of 2024.

The London IPO market 2026 shows a continuation of this uptick; in H1 2026, the London Stock Exchange recorded seven new listings raising £577m — a 215% increase in proceeds compared with H1 2025, with four of those listings on AIM.

Moves are afoot to make the AIM market more accessible; the London Stock Exchange has consulted on simplifying AIM’s admission requirements and reducing reporting costs — changes aimed directly at making the market easier for businesses to access.

What the Journey Involves and Where to Start

If you want to tap into the opportunities that an AIM listing could bring to your business, what do you need to do?

The AIM admission process involves appointing a Nominated Adviser (Nomad) alongside brokers, lawyers and reporting accountants.

It also requires a communications workstream that’s often underestimated.

Admission documents, investor presentations, virtual roadshows and the ongoing shareholder communications obligations that come with being a public company all need to be planned and resourced.

AIM: a Route to Consider

While AIM isn’t right for every company, for ambitious growth businesses with the right profile and timing, it can be an effective route to accessing public capital in Europe. If you’re considering an AIM listing, your IPO communications strategy is worth making part of your IPO checklist and budget from the start. 

Perivan’s long-standing experience in delivering pre-IPO documents, investor presentations and roadshows, as well as working on Shareholder Communications for companies who have gone public, means we are well-placed to support businesses looking to list on AIM. Find out more about our pre-IPO services and solutions, or get in touch for a no-obligation chat.