Investment firm valued up to £675m as part of Stock Market flotation

Manchester investment firm AJ Bell announced details of its proposed initial public offering (IPO) this morning, which values the business at between £626m and £675m.

Chief executive of Andy Bell said: “There has been significant interest in our IPO which reflects the potential for expansion in our market, the strength of our business model and our track record of sustainable growth.

“The application period for the IPO is due to open later today and our customers will be able to apply for shares via our investment platform where they will find the prospectus to help inform their decision.”

The price range for the Offer has been set at £1.54 to £1.66 per ordinary share, implying a market capitalisation on admission of between £626m and £675m.

The Offer will be comprised of existing ordinary shares expected to be sold by certain existing shareholders, directors and employees.

AJ Bell said the offer will comprise: Only existing shares to be sold by the selling shareholders; a targeted offering to institutional investors in the UK; and an offer of shares to qualifying AJ Bell customers in the UK via the AJ Bell online investment platform.

The full details of the offer will be included in the prospectus which is expected to be published by the company later today.

The application period for the qualifying offer will commence following publication of the prospectus.

Completed applications in respect of the customer and employee offer must be submitted online by 5pm on December 5, 2018.

Final pricing is expected to be announced on, or around December 7, 2018, with conditional dealings in the shares expected to commence on the London Stock Exchange at 8am on the same day.

Admission of the company’s shares is expected to occur, and unconditional dealings in the shares on the London Stock Exchange are expected to commence, on or around December 12, 2018.

Each of the directors of the company and selling shareholders will agree to customary lock-in arrangements in respect of their shares for a period of time following admission

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 at admission 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 be subject to a one-year lock-in period following the date of admission in respect of 100% of their shareholdings at admission and will be subject to a further one-year lock-in period thereafter in respect of 50% of their shareholdings at admission.

In each case, such lock-in arrangements exclude any shares that employee selling shareholders, who are not management selling shareholders, may purchase pursuant to the qualifying offer.

Invesco Perpetual and Seneca Investment Managers will be subject to a 180-day lock-in period following the date of admission in respect of their shareholdings at admission; and non-employee selling shareholders, or selling shareholders who are ex-employees of the company, will be subject to a 180-day lock-in period following the date of admission in respect of their shareholdings at admission, but excluding any shares they may purchase pursuant to the qualifying offer.

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

Corporate law firm Addleshaw Goddard has been mandated as the legal adviser to Numis in its role as sponsor, financial adviser, sole bookrunner and broker to AJ Bell.

The Addleshaw Goddard team advising Numis on the deal is led by partners Giles Distin (London) and Richard Lee (Manchester), and includes Jeremy Cruse, Jenny Crossan, Lauren Scott and Isabelle Kilner advising across Addleshaw Goddard’s London and Manchester offices.

Giles Distin said: “We’re extremely pleased to have advised Numis, the sole investment bank advising on the AJ Bell IPO.”