As Israeli businesses continue to expand internationally, the UK presents a well-established and accessible market for raising capital for international businesses. Roughly 25% of all AIM listed companies are overseas businesses. For growth-stage businesses, the Alternative Investment Market (AIM), a sub-market of the London Stock Exchange (LSE), offers a flexible platform for public listings, especially for those looking to scale and attract institutional investors. This blog outlines how an Israeli business can list on AIM, focusing on the AIM listing requirements for Israeli companies and the UK IPO process. We also highlight key legal steps, common pitfalls, and how UK advisers can support your journey to the London markets.
Why AIM Appeals to Israeli Companies
Israeli innovation is renowned across sectors like technology, life sciences, cleantech, and fintech. For these businesses, AIM offers a unique gateway to raise capital in a sophisticated financial market without the full regulatory burden of an LSE Main Market listing. With its flexible rules and focus on growth, AIM provides Israeli entrepreneurs and investors with access to deep pools of institutional capital, enhanced brand visibility, and a platform for international expansion.
Yet, while the commercial upside is clear, navigating the AIM listing process or overseas businesses involves specific legal and regulatory steps that must be managed carefully.
AIM Listing Requirements for Israeli Companies
To list on AIM, an Israeli company must meet certain eligibility criteria and be prepared to undergo a comprehensive legal and financial readiness process. Unlike the LSE's Main Market, AIM does not impose minimum market capitalisation or a minimum number of shares to be in public hands. However, the listing must be supported by a Nominated Adviser (NOMAD), who plays a critical regulatory and advisory role throughout the process. A NOMAD will be a UK based corporate finance firm who will manage the IPO process for the company, and many such firms include an in house broker who will be responsible any fund required raise.
Key requirements include:
- Sufficient working capital for at least 12 months from launch
- Compliance with a recognised corporate governance code (or explain why not)
- Three years of audited financial information (if available)- the NOMAD will expect the auditors to be an international firm
- Appointment of a NOMAD and broker authorised by the London Stock Exchange
It is also crucial for the company’s structure and reporting to align with UK investor expectations, which often necessitates early legal and tax planning.
The AIM IPO Process for Israeli businesses
The UK IPO process for an Israeli company on AIM typically involves the following stages:
- Initial assessment and planning: Engage a UK legal adviser familiar with cross-border AIM listings to assess the company’s readiness, corporate structure, and potential legal risks.
- Team assembly: Appoint key advisers, including a NOMAD, broker, auditors, tax advisers, and financial PR firm.
- Due diligence: Conduct legal, financial, and tax due diligence to identify any significant issues or structural adjustments needed prior to listing.
- Drafting of the AIM Admission Document: This key legal document outlines the company’s business, financials, and risk factors. It must meet stringent disclosure standards.
- Regulatory and shareholder approvals: These may be required depending on the company’s current jurisdiction and structure.
- Marketing and roadshow: The company will typically present to institutional investors in the UK to support demand for any required fund raising.
- Admission to AIM: Upon successful completion, the company’s shares are admitted to trading on AIM.
Key Legal Considerations
Israeli companies must ensure their corporate governance, shareholding structure, and reporting standards are aligned with UK market norms. Issues like dual-share structures, related-party transactions, or unresolved IP rights can delay or even derail a listing.
Depending on their legal structure and commercial goals, some Israeli companies may choose to establish a UK holding company as part of their AIM listing strategy. This can offer advantages in terms of regulatory alignment, investor familiarity, and tax planning. However, this approach requires careful coordination between Israeli and UK legal and tax advisers to assess its suitability and to manage implications around control, ownership, and tax residence.
Common Pitfalls to Avoid
- Underestimating the timeline: A typical AIM IPO can take 4–6 months, and longer if restructuring or significant due diligence is required.
- Choosing the wrong advisers: Not all advisers are experienced in cross-border AIM listings. Israeli companies should select a legal team with a proven track record in UK IPOs and Israel-UK transactions.
- Insufficient preparation: Poor financial records, unclear group structures, or regulatory gaps can cause delays. Early planning is essential.
How We Can Help
Our Israel Group combines deep UK capital markets expertise with a strong understanding of the Israeli business environment. We regularly advise companies on AIM listings, from structuring and legal due diligence to liaising with NOMADs and managing the IPO timeline. Whether you are just beginning to explore a UK listing or are ready to proceed, our team is here to provide practical, commercially focused legal guidance every step of the way.
Get in touch to learn more about how to list on AIM or for tailored advice on your AIM IPO process.
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