Investment firm announces it is to float on Stock Market within weeks

Andy Bell

Manchester investment firm AJ Bell has formally announced it is to float on the stock market.

The business, which is based in Salford Quays and employs around 750 people, is expected to be valued at £500m.

The flotation onto the main stock market is expected to be one of the biggest in the North West this year.

The company issued a statement this morning saying it intends to apply for admission of its ordinary shares to the main market.

As part of the IPO AJ Bell customers in the United Kingdom can apply for shares via the AJ Bell online investment platform. The minimum application size in the Qualifying Offer will be £1,000.

The indicative price range in respect of the offer, together with the maximum number of shares to be sold in the offer, will be determined in due course and contained in the prospectus expected to be published in the coming weeks.

The final offer price in respect of the offer will be determined following publication of the prospectus and a book-building process, with admission expected to take place in December 2018.

The offer will be comprised of only existing shares to be sold by certain existing shareholders, directors and employees.

The directors of the company believe that this is an appropriate time to bring the group to the public market, reflecting the robust foundations established for future growth.

Immediately following admission, the Company intends to have a free float of at least 25% of the company’s issued share capital.

The directors and senior managers of the company will be subject to a one year lock-in period following the date of admission in respect of 100% of their shareholdings and will be subject to a further one year lock-in period thereafter in respect of 50% of their shareholdings at admission;

Employee Selling Shareholders will also be subject to a one year lock-in period.

The Company has engaged Numis Securities to act as sponsor, financial adviser, sole bookrunner and broker.

Earlier this month the company announced profits of £28.4m for the last 12 months.

AJ Bell reported revenues up 19% to £89.7 million, profit before tax up 31% to £28.4 million and a 29% increase in basic earnings per share to 55.26 pence.

The company said performance was driven by strong growth in the core platform business with assets under administration increasing 25% to £38.6bn and platform customer numbers up 30% to 183,213.

Chief executive Andy Bell said: “The purpose at the heart of our business is to make it easy for people to invest.

“We do this by delivering innovative, low-cost and transparent investment products via our platform.

“This focus on the customer has enabled us to grow since formation in 1995 to become one of the largest investment platforms in the UK, spanning both D2C and advised markets.

“With nearly 200,000 customers and AUA of £46.1 billion, we are a business of scale operating in a fast growing market.

“We have a history of profitability, cash generation and dividends and this is once again demonstrated in our latest full year results.

“Our intention to float the business on the London Stock Exchange reflects both our historic achievements and our belief in how much more we can achieve. A listing offers us further reputational and commercial benefits that will support our growth plans.”

Law firm Pinsent Masons is acting for AJ Bell on the flotation.

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