SMALL CAP MOVERS: Have UK minnows finally seen the end of the funding logjam? By Ian Lyall At Proactive Investors For Thisismoney.co.uk Updated: 13:26 BST, 21 June 2024 e-mail View comments Are we starting to see a break in the small-cap funding logjam of the past two years? Possibly.
But don’t expect it to be a long-lived phenomenon. Since the start of May, growth companies have raised around £270 million in new investment. Now that may not sound a huge amount, but it represents an uptick when you realise that a total of £228 million was raised in IPOs and follow-on funding in the first quarter.
This market renaissance is expected to be short-lived with pent-up supply bursting through ahead of the General Election. Since the start of May, growth companies have raised around £270 million in new investment. The prevailing opinion in the Square Mile is the taps will be turned off after the vote and as London heads into the dog days of summer.
And don’t think the past six weeks have been a period of unalloyed joy. Companies have been forced to take steep discounts to complete some chunky fundraisers with investors asked to endure significant dilution – much as retail platforms such as REX and Primary Bid have tried to mitigate the latter issue. For those not lucky enough to refill the coffers it has been tough going - and for some it is already too late.
Active Energy Group (down 63 per cent) said it intends to cancel its listing on AIM and enter a voluntary liquidation.
