Aim lands its 1,000th company

THE Alternative Investment Market now has 1,000 companies trading on it for the first time. Educational courses provider AEC Education became the 1,000th company early today after it was brought to the market by Nabarro Wells, its nominated adviser. Hichins, Harrison & Co is AEC's broker.

Another business, Leptis Magna, a natural resources company specialising in Africa also listed ? broker WH Ireland managed the placing of 2.5m shares. Keith Smith, director of Nabarro Wells, has been active with Aim companies since the market started in 1995. Then at Gerard Vivian Grey, Smith brought Formscan to Aim.

Passing the 1,000 mark is seen as a huge vote of confidence for the market. Aim has proved an attractive market for small cap businesses transferring from the main market because of lower listing fees, lighter regulation and inheritance tax advantages for family-owed firms.

But Smith says overseas companies in particular see Aim as an attractive market in which to list, some having been scared off Nasdaq by the rising tide of regulation in the US. He added: 'There's a much better quality of business coming on Aim now, it's become a major source of funds for overseas companies. There is also big demand for natural resource stocks and developing interest in overseas industrials.'

Smith advised Australian wine business Palandri on its successful Aim listing earlier this year. And although AEC is a UK company, it operates in Malaysia and Singapore ? the business is the first Singaporean operation to have a sole listing on Aim.

Investors are increasingly attracted to Aim, although large funds were initially reluctant to invest in the market. Framlington has emerged as one of the biggest investors, having initially declared that its funds would not invest in Aim stocks.

AEC shares showed a healthy premium on their first day of trading with the shares trading at 44.5p early on ? compared with the placing price of 41p.