By Charlie Conchie
California-based wound care specialist Advanced Oxygen Therapy Inc (AOTI) is drawing up plans to raise around £39.5m on the London Stock Exchange’s junior AIM market through an initial public offering next month, Sky News reported today.
If successful, the IPO will value AOTI at around £160m, sources told the outlet. The company did not immediately respond to a request for comment.
News of the plans come after computer-maker Raspberry Pi confirmed it was readying a London float yesterday and fast-fashion giant Shein is said to be prioritising plans for a listing in the City after pushback in the US.
The listings would be a much-needed boost for London’s struggling stock market, which has been hit by a dearth of IPOs, heavy investor outflows and an exodus of firms delisting or being taken private.
After fresh IPOs cratered to a post-financial crisis low last year, the government and regulators are racing to implement a slew of capital market reforms to boost London’s attractiveness as a trading venue.
“The pipeline is becoming increasingly encouraging,” the London Stock Exchange’s deputy chief executive Charlie Walker told City A.M. last week, prior to reports that Shein and Raspberry Pi were plotting London floats.
A float on AIM will offer some much-needed relief for the London Stock Exchange’s junior market after a torrent of exits over the past 18 months.
The number of firms listed on AIM has cratered 30 per cent from 1,104 to just 742 since Redx debuted in 2015. Last year alone, AIM suffered 78 cancellations and a further 15 in the opening two months of this year.
