THE Yanks are coming. Brokers expect to see a wave of American companies float on the Alternative Investment Market (AIM) in 2006. The junior market is already home to more than 20 American firms, including DIC Entertainment, a television company, and Consentino, a California wine producer. Numis, I hear, is working on a £100m float.
So why are American companies turning their backs on the likes of Nasdaq and listing in London? Privately, brokers admit that the market’s more relaxed regulatory regime is the real attraction. Complying with America’s Sarbanes-Oxley Act is prohibitively expensive for small firms that are looking to raise money in the public markets.
AIM was designed to be a lightly regulated market for growing companies — allowing them to raise cash without the expense of floating on the main market.
The difficulty for investors and regulators is spotting the small number of firms that will abuse the more relaxed regime — particularly if the business is based 4,000 miles away.
Internet Bus stock quotes
Internet Bus stock charts
Follow this thread
