Irish firms are urged to target AIM

IRISH companies looking to expand quickly should list on London's Alternative Investment Market (AIM), the exchange's deputy head told entrepreneurs in Dublin yesterday.

Mathew Wootton said 11 Irish companies had already listed on the AIM. The market offered companies a way to raise funds without incurring high costs and meeting the onerous regulatory requirements involved in a full listing on the London Stock Exchange, he said.

Two Irish companies, Cork drug researcher EiRx Therapeutics and Kenmare-based hotel reservation business CNG Travel, raised funds through AIM listings earlier this year. They joined exploration companies such as Petroceltic (formerly known as Ennex), first aid product developer Alltracel and recruitment company CPL.

Mr Wootton said it was important for companies to look at an AIM listing as the start of a process rather than an end in itself to allow businesses to realise cash from their investment. "AIM is a platform for a company to grow, develop and expand," he said.

Almost 850 companies are listed on the AIM, which was set up in 1995. By contrast, the London Stock Exchange features over 1,400 companies. Mr Wootton said three-quarters of the companies were valued at less than €30 million and the market contained businesses from a wide range of sectors, including mining, oil and gas, leisure and hotels, software, pharmaceuticals, media and retailing.

Mr Wootton was speaking at a business briefing organised by Bank of Ireland subsidiary IBI Corporate Finance. CNG Travel finance director Ronnie Culliton told the briefing the company's AIM experience had been positive and its listing had given it a higher profile and access to high-quality investors. The company raised €33m when it listed in May.

The AIM has been used to raise over €17 billion for 1,400 companies since its inception. It accounted for almost two-thirds of all Initial Public Offerings in western Europe last year.