The Alternative Investment Market has said property has been one of the principal driving forces behind a record year in 2006.
New companies listing on the market raised a record £10bn in new funds – nearly doubling last year’s £6.46bn.
Nominated AIM adviser Grant Thornton Corporate Finance said the fundraising records had been created by the growing popularity of property and private equity funds.
Property has become the second largest constituent of AIM by market capitalisation after oil and gas producers.
Philip Secrett, partner at Grant Thornton Corporate Finance, said: “Property funds and private equity funds (under the sub sectors of real estate and equity investment instruments) this year represented over 50% of all new issue cash raised.”
The adviser found real estate companies raised £3.42bn and £1.67bn was raised by equity investment instruments.
Secondary fundraising was also at an all time high, with over £5.1bn being raised this year – more than twice the amount raised in 2005.
AIM’s fundraising records, which totalled £15bn, come despite a significantly slowing rate of market growth by net company additions which fell by 74% – from 378 net in 2005 to 217 in 2006.
Aggregate AIM market capitalisation increased 46% over the 11 months to November 2006.
References: EGi News 03/01/07
