AIM floats to a fresh record

The number of companies trading on the Alternative Investment Market (AIM), the junior market run by the London Stock Exchange, reached a record 750 yesterday after two new flotations. The arrival of Strategic Retail - which has bought the DIY retailer Fads - and Vista Group, a maker of PVC doors, capped a busy week and a much improved year for AIM. Both shares moved to a modest premium to their opening prices.

With this year almost over, 140 new companies have joined AIM while 19 have signalled their intention to float in the near future. In 2002, 147 companies joined AIM. Initial public offerings on the junior market have raised £970m to date this year, compared with £436m in 2002. The peak year was 2000, when 265 companies joined AIM, raising £1.4bn.

Fads, which has 53 stores, was declared insolvent 18 months ago and sold for £1 to Strategic Retail, a cash shell set up by the company's administrator. The group plans to buy other distressed retailers. Floated with a market value of £11.9m, the shares rose 3p to 94p yesterday.

Vistashares rose 4.5p to 100.5p yesterday. There was also news that Planit, which makes software for the furniture trade, will transfer to AIM from the main market in the new year.

AIM is searching for a new head after the departure of Simon Brickles to become a consultant to Ofex, the rival small companies market. Ofex yesterday raised £1m through a placing of shares, saying it would use the cash to fund new computer systems. Luke Johnson, the leisure entrepreneur, is joining the board as a non-executive director after subscribing to a third of the new shares.