AIM market in overseas drive for new recruits

AIM, the London Stock Exchange's junior market for growth companies, is introducing a new fast-track applications procedure to attract Nasdaq-listed stocks to London.

The Stock Exchange will say today that it has agreed slimmed down listing procedures for companies already traded on the US technology market and eight other overseas exchanges.

The move comes as part of AIM's big marketing push overseas and observers say the changes could cut the cost of listing by up to 20 per cent for established companies.

Companies whose shares are already traded on certain overseas exchanges will no longer have to produce a full admission document if they want to establish a secondary listing on AIM - dramatically reducing the time and legal costs involved.

Simon Brickles, the head of AIM, said the junior market in London could offer a higher profile to overseas companies, as well as a new venue for tapping equity markets.

"If you are on another major market dominated by bigger companies, a complementary listing on AIM could increase your profile, making you a slightly larger fish in the pool," he said.

The details, to be announced today, have already received the backing of the nominated advisers, brokers and lawyers associated with AIM.

The admission document includes disclosures about matters such as directors' backgrounds, business activities and financial positions. The requirement to produce such a document is already waived for companies listed on the London Stock Exchange - many of whom have moved down from the main list to AIM during the bear market to save on fees and to reflect their reduced market capitalisations.

Nine overseas exchanges will be included in the "designated markets" scheme, including Nasdaq, the New York Stock Exchange, Deutsche Börse, Euronext and Australian and Toronto exchanges. AIM has already had some success in attracting overseas companies, particularly from the English-speaking world where it is concentrating its marketing efforts. More than a dozen Australian mining firms have already taken a listing.

AIM was established in 1995 as a market for smaller or growth companies and has grown to accommodate 700 companies.