Nasdaq Receiving More Listing Inquiries From LSE AIM Companies
30 July 2009 - 5:18AM
Dow Jones News
The number of London Stock Exchange AIM companies interested in
launching U.S. listings is increasing, according to Nasdaq, with
one company, Globe Specialty Metals Inc., preparing to land in the
Nasdaq's arms Thursday.
Globe will initially retain its Alternative Investment Market
listing when it begins trading under the Nasdaq symbol GSM
following a 14 million share follow-on offering. Nasdaq OMX Group
Inc. (NDAQ) officials say that more AIM-listed companies are
expressing interest in heading to the U.S., citing a lack of
liquidity on AIM; so far, only a handful have actually done so,
including Globe.
"I would say I've received well over a dozen inquiries [from
AIM-listed companies], but I don't know how many of those will move
forward," said Bob McCooey, head of new listings for Nasdaq OMX.
"The No. 1 issue we hear is the lack of liquidity."
AIM is the LSE's marketplace for up-and-coming companies, and
has been marketed as a welcoming listing venue with hands-off
regulation and less paperwork than mainstream markets like the LSE
and the Nasdaq.
In the first half of 2009, 150 companies left AIM, and just over
half of them left at their own request. Among those looking to
leave at the moment is U.S. biotechnology company Northwest
Biotherapeutics Inc. (NWBO), which last week announced it will seek
shareholder approval to cancel its listing on AIM, while keeping
its U.S. listing on the NASD Over the Counter Bulletin Board
Market. The company pointed to, among other issues, the lack of
significant liquidity on the AIM.
The New York Stock Exchange says it doesn't have available data
on AIM companies expressing interest in listing on one of its
venues. Globe executives declined to comment on their decision to
list on Nasdaq or future plans for their AIM listing, citing a
quiet period surrounding their stock sale.
AIM officials say that while listings are down, the decline has
no correlation to the level of liquidity in the market.
"There's a whole range of reasons why companies leave AIM - some
move to the main market or engage in corporate transactions like
reverse takeovers. There are also some companies for whom it is no
longer cost effective to be on the market," said an LSE spokesman.
"I don't think there's a direct correlation to liquidity [and
delisting]. We're continuing to do what we can to help liquidity.
We're looking at how we make market making more attractive...and
have launched a research service to increase the visibility of
companies in the market."
-By Lynn Cowan and Rachael Gormley, Dow Jones Newswires;
301-270-0323; lynn.cowan@dowjones.com