Equity Research

1. Is the Nominated Broker required to support a London AIM IPO with equity research coverage?

No, although, if the Nominated Broker has the internal capability, they typically do.  Otherwise, the Nominated Broker would organize the production of independent equity research coverage so that the London AIM institutional investors can satisfy their due diligence requirements.

2. If the Nominated Broker supports a London AIM IPO with equity research coverage, will the Nominated Broker provide ongoing coverage?

This largely depends upon how the company is performing, the probability of secondary offerings and the level of trading volume the Nominated Broker is able to capture as a market maker.

3. If our Nominated Broker is not providing equity research coverage, what are our other options?

Over the last 10 years, independent equity research has emerged as an industry to primarily serve the smaller end of London's AIM.  There are six London-based firms that provide this service using different business models and methodologies.

4. Is there a connection between equity research and liquidity on London's AIM?

This is hard to prove but there is probably a loose connection.

5. What are the main benefits of equity research?

The main benefits of equity research are the ability to target specific London AIM investors for secondary offerings and perhaps improve liquidity on London's AIM.