ERNST & Young Australia is poised to become the third Australian organisation to be a nominated adviser (NOMAD) for the London Stock Exchange’s Alternative Investment Market.
It joins RFC Corporate Finance and Macquarie Bank, which became NOMADs in the past two years.
More than 20 Australian companies have listed on AIM in recent years, seeking to take advantage of the market’s greater depth and the opportunity to lift their international profile.
Many of these companies have international mining projects (eg Aquarius Platinum) or technology that is being marketed globally (eg CustomVis).
The latest Western Australian company seeking an AIM listing is an exception to the usual pattern.
Unlisted wine producer Palandri is seeking to raise extra capital on AIM to bolster its balance sheet.
Ernst & Young partner Michael Anghie said the decision to become a NOMAD followed a series of seminars the firm conducted last year in conjunction with the London Stock Exchange.
He said the seminars attracted significant interest from both Australian Stock Exchange-listed companies and unlisted companies.
Ernst & Young is already a registered NOMAD in the UK and Mr Anghie believes there will be clear benefits from the Australian arm also being a NOMAD.
“We will be able to provide more hands-on assistance to our Australian-based clients given that we will be able to work side-by-side in preparing them for their AIM listing,” he said.
Mr Anghie said changes to the AIM listing requirements last year would enable ASX companies to utilise their current ASX disclosure documents.
As a result, they could list on AIM in a more efficient and cost-effective manner.
He said AIM’s admission criteria and regulatory requirements were suited to young and growing companies.
“For example, AIM has no requirement for a company to have a minimum trading history, no requirement for a minimum free float of the company’s shares and no minimum shareholder numbers.”
