A bold plan to launch a new junior stock market in London is underway, spearheaded by prominent City figures aiming to challenge the long-established but struggling AIM market.
The Global Growth Market Initiative
Former Boku chief executive Jon Prideaux and ex-AIM boss Martin Graham are leading the charge to create the Global Growth Market (GGM). The duo have approached investors seeking to raise £4 million to fund the ambitious project, according to reports.
The substantial funding would be allocated toward building GGM's proprietary technology platform and submitting a formal licensing application with UK financial regulators. This move comes as London's public markets face increasing pressure from international competitors.
Radical Approach to Attract Companies
The proposed market intends to implement revolutionary measures to entice growing businesses. GGM plans to eliminate fund management fees and carried interest while committing to provide half of the capital requirements for eligible companies.
Jon Prideaux explained the rationale behind the new venture, stating: "Public markets stopped working for growth companies years ago. We are building a new market that brings both companies and capital back to the public markets – by offering a better deal to both."
Failed AIM Transformation Talks
The announcement follows unsuccessful discussions between Prideaux and London Stock Exchange Group (LSEG), AIM's current owner, about potentially revamping the junior market. These talks occurred after a prolonged drought in new listings that has concerned market participants.
Although Prideaux withheld specific details about his proposals, a source familiar with the matter revealed that the plan involved LSEG spinning off AIM to allow fresh investors to revitalise the platform.
However, LSEG firmly rejected any possibility of a deal, issuing a strong statement: "AIM is not for sale. It is a vital component of our strategy to build a funding continuum that is seamlessly connected so that companies can start, grow, scale, and stay in the UK."
The exchange group emphasised AIM's 30-year history as the premier market for dynamic high-growth businesses, supported by what it described as a remarkable community of companies, advisors and investors.
Despite these assertions, recent data reveals significant challenges. The number of AIM companies valued over £1 billion has plummeted by 80 per cent since early 2022, with nearly half disappearing in just the past year alone, according to London Stock Exchange figures.
