[Last updated: 1 January 2024, unless otherwise noted]

The London Stock Exchange (more commonly referred to as the LSE) operates the following markets:

• The Main Market (a UK regulated market) comprising:
  • The premium listing segment.
  • The standard listing segment.
  • The Specialist Fund Segment (SFS).
  • The High Growth Segment (HGS).
  • The Sustainable Bond Market (SBM).
  • London Stock Exchange Stock Connect (The Shanghai-London Stock Connect & the Shenzhen-London Stock Connect).
• AIM (formerly known as the Alternative Investment Market) (an exchange regulated market or UK multilateral trading facility (UK MTF)).
• The Professional Securities Market (PSM) (an exchange regulated market or UK MTF).
• The International Securities Market (ISM) (an exchange regulated market or UK MTF).

This summary relates only to AIM, a designated small and medium-sized enterprises (SME) Growth Market, which is the LSE’s international market for smaller, growing companies from a wide range of countries and sectors. AIM was founded in 1995 and is known for its balanced approach to regulation, which is well-suited to smaller companies. The AIM rules are concise and principles-based. Generally, the business of a non-UK incorporated company seeking a quotation on AIM should be international and not limited to its local market. Certain types of companies, such as natural resources and technology companies, are by their nature international. Other types of companies should at least have international markets or seek to expand internationally.

The principal advantage of an admission to AIM is its balanced regulatory environment, which is designed to meet the needs of smaller and growing companies while offering appropriate investor protection. The entry criteria are tailored to growing companies and, as described in more detail below, there are generally no minimum requirements as to trading record, public float and market capitalization. In addition, under certain circumstances, applicants may not need to have a prospectus approved by the UK Financial Conduct Authority (FCA) to conduct their offering.

Other advantages for a company joining AIM include: access to a diverse and highly knowledgeable  international investor base keen to provide capital to support growing companies; the existence of a large and experienced community of advisers and liquidity providers to help companies join AIM and support them after admission; a market in which companies can use shares as currency, to make acquisitions and grow the business; and the associated visibility and profile raising with customers, suppliers, investors and other stakeholders on an international scale.

The LSE does not make any distinction between primary and secondary listings or quotations in respect of admission to AIM. Companies are admitted to trading on AIM rather than listed.

As of 31 December 2023, the aggregate market capitalization of companies admitted to trading on AIM was approximately £78.96 billion (approximately US$100.53 billion). This represents a decrease of approximately 15.3% since December 2022, when aggregate market capitalization was approximately £93.21 billion (approximately US$118.67 billion). AIM is an international market for smaller and growing companies. Admission to trading on AIM is available to companies from all sectors and from all over the world, and a diverse range of such companies have been admitted to trading.

As of 31 December 2023, there were 753 companies (December 2022: 816) admitted to trading on AIM. Of these, 652 (December 2022: 705) were domestic and 101 (December 2022: 111) foreign. However, some of the domestic companies are UK holding companies of foreign companies with foreign operations formed for the purpose of facilitating AIM admission.

Application will need to be made to the LSE for any proposed admission to trading on AIM. As AIM is not a regulated market for the purposes of the UK Prospectus Regulation, no prospectus will be required to be drawn up or approved by the FCA provided that the admission involves an offer to fewer than 150 persons in the UK where the offer is made (excluding any qualified investors who are essentially professional investors). The FCA is therefore not typically involved in an AIM admission.