Despite intense media interest in AIM, there has been scant attention paid to an interesting alternative: the PLUS Markets Group, or plain PLUS. Yet PLUS is growing in popularity, with 40 companies joining the market in 2007, writes Nick Winters, a partner at business advisory firm Vantis.

PLUS is an independent equity market based in the City of London. It started life as OFEX but was renamed and relaunched under new ownership in 2006.

The current management, headed by former AIM chief Simon Brickles, has ambitious plans for PLUS, which include providing an alternative for companies deterred by the expense of an AIM listing (usually more than £300,000). With its less stringent regulations, PLUS appears to offer an easier route to an initial public offering (IPO) and a less costly way of raising finance.

Of course, flotation is not just about raising cash. It marks a sea-change in the way a business operates, with leaders frequently forced away from their comfort zone to talk to advisers, potential investors and the media. With its lower profile, a PLUS flotation might be a good option for companies that prefer a more low-key entrance to the markets and a less heavily regulated environment.

While AIM offers a simpler route to flotation than a full stock exchange listing, companies still need to brace themselves for a lengthy process during which they will be pulled away from the running of the business to focus on the flotation itself. The PLUS admissions procedure, on the other hand, can usually be completed in three months or less. This means that some companies choose to use PLUS as an alternative to pre-IPO fundraising.

In a bid to be flexible, PLUS offers three different routes to admission. Companies that are keen to raise profile as opposed to funds can do so without needing to produce even an admission document or formal prospectus.

The second option is for companies looking to raise funds from a limited number of investors (up to 100). These need to file what’s called a private placement memorandum, which is less detailed than an admission document or full prospectus.

To raise funds from the widest possible pool of investors, you’ll need an admission document, and if you’re planning to raise more than €2.5 million (£1.9 million), a full prospectus.

Of course, PLUS isn’t for everyone. For larger companies looking to raise significant amounts, a listing on AIM or the Main Market could be more attractive. What PLUS offers is an alternative for smaller, ambitious companies seeking to access equity finance on a public market.