Armchair Trader - Ivan Sedgwick on smaller companies and the AIM market
Ivan Sedgwick, LGB's Investment Director, featured on the Armchair Trader podcast this month to discuss the changing characteristics of the AIM market, including institutional participation, the climate for IPOs on AIM, retail investment appetite, and the UK SME landscape.
"A lot of money was raised on the AIM market in 2020 to help smaller companies get through the pandemic.
The market does seem to be good, and is very much supported by venture capital trusts. We make some interesting contrasts in our discussion about the differences between the AIM IPO deal market and that prevailing in the USA.
Ivan talks about the levels of participation of retail investment platforms in the AIM market and the Hill report. We ask him about whether more can be done to make the London market more competitive for listings, especially after Brexit. Can the UK AIM market remain competitive, especially with international capital flows?
The podcast is also a great opportunity to catch up on specific smaller company sectors that have interested our readers, including the pipeline of tech IPOs. As Ivan says, “it takes a while to get a tech company market ready.” He expects to see more IPOs, but as he tells us, “you can’t conjure these out of thin air.”
He also discusses the UK healthcare/life sciences sector which he thinks may well be a more fertile source of IPOs going forward.
The podcast also focuses on the mining and natural resources small cap space. Ivan shares some observations with us, especially the interesting market for rare metals stocks. The real problem, he feels, lies with the oil and gas exploration companies, which are facing a potentially sizeable backlash from investors and regulators. Ivan tells us that he thinks some explorers will be taken private by private equity companies, as they could face too much heat in the public markets.
We also talk about the very exciting area of clean technology and green energy, including energy storage and battery technology. We round off with looking at the overall post-pandemic recovery theme and a look at commodity markets and inflation."