Firms looking at floats as optimists gain ground

Oct 5 2009 by Peter McCusker, The Journal

TWO North East companies are involved in talks about a possible stock market flotation before the end of year in a further sign that confidence is returning to the region’s economy.

In 2007 five North East businesses were planning to list on the Alternative Investment Market (AIM) until the credit crunch persuaded them to wait until the economy steadied. But now as credit conditions ease and markets across the globe rally, talks are now well advanced with two regional business wanting to come to the market.

These may well be completed by the end of this year and another seven companies in the region are considering listing on the market next year. One of the companies which is mulling a flotation this year is said to be a bio-technology company and the other a retailer.

Marcus Stuttard, the head of the Alternative Investment Market, visited the North East last week.

It was the first visit to the region by a head of AIM for years and saw him address members of the advisory community and representative from AIM companies.

He said: “Over £2.5bn has been raised on the AIM market so far this year and this has not just been about raising finance to shore up balance sheets.

“There is an appetite from institutional investors and high net worth individuals to invest in good quality businesses with strong management teams.”