OK, so here is a story that illustrates the value of an AIM listing to a company. It is that of engineering consultancy WYG.
WYG announced a strategic review on Monday, that it has effectively put itself up for sale.
http://www.investegate.co.uk/wyg-plc--wyg-/rns/str...
...the Board has initiated a formal review of strategic options open to the Company
Since its financial restructuring was completed in July 2011, WYG has implemented a strategy to refocus its operations and is now well established as a leading global consultancy with a strong International Development capability. WYG has achieved a turnaround in profitability
As can be seen from WYG's Half Year Report released on 2nd December 2014, WYG is enjoying strong growth in its project pipeline and is creating almost more opportunities than it can readily service directly using its existing model of organic growth, supplemented by smaller bolt-on acquisitions and partnerships.
... strategic review may or may not conclude that, given its current relative scale, being part of a larger business or expanding the scale of its current operating platform would provide significant advantages and better position the Company
shares in the company are ahead significantly since the 'completion of capital restructuring' of July 2011. The company is back to making profits and acquisitions and the company paid a dividend again for 2014. The dividend has since been increased (an interim dividend has been initiated)
Those that took part in the rescue rights issue in June 2011 at 50p have done well, shares closed the week at around 113p.
Would WYG have been able to raise that money if it were not a listed company, with a liquid market that would facilitate
a) share trading
b) valuation
would the company have been able to retain the turnaround management, if it had not been able to offer shares in a listed company as an award for success?
There is a significant likelihood that WYG would have gone totally bust had it not been an AIM-quoted company at the time it ran into such difficulties. Remember, the fact that AIM companies are able to execute share placings without making the offer to all existing shareholders is one of the biggest criticisms of the market but here WYG was able to raise a large amount of new money at a time when it was very much needed.
So, there we go, WYG is AIM story of the week. If my reading…
