AJ Bell reveals plans for £500m float
Investment group AJ Bell plans to go public within a year in a move that it hopes will enable growth through an increased profile.
The Salford Quays-based firm has appointed Numis Securities to advise on a listing on the London Stock Exchange. The float is expected to take place towards the end of 2018 or early 2019.
Chief executive Andy Bell, who founded the firm in 1995, said: “An IPO is a natural next step in our journey and will provide a further boost to our future growth through the increased profile a stock market listing will give us.”
A valuation at or above £500m is expected, putting it within reach of a place in the FTSE 250.
The group does not intend to raise new capital, although Bell himself could earn £15m from selling 3% of the group while retaining 25%. The largest shareholder, Invesco Perpetual, which currently has 44% will retain a “cornerstone shareholding” post-IPO.
Around 150 AJ Bell staff share 25% and Seneca Investment Managers holds the remaining 3%.
Bell said: “These are exciting times for our business. Over the last 22 years we have built a multi-award winning and easy to use investment platform that is the engine room of a fast growing and profitable business.”
AJ Bell’s headquarters at Exchange Quay
The initial public offering (IPO) would include a retail share offer to be available exclusively to UK-based AJ Bell customers.
“We now have 172,000 customers and I want them to be able to share in our success by giving them exclusive access to the offer,” said Bell.
Last month AJ Bell said it will recruit 200 staff at its North West headquarters this year, increasing its workforce based there to 700. The firm also has offices in Tunbridge Wells and London.
In its last financial year, to September 2017, AJ bell’s “highly profitable, proven model” delivered a 29% increase in pre-tax profits to £21.7m while revenues grew 17% to £75.6m.
“We believe the outlook for our business is extremely positive,” added Bell. “The need for people to save and invest for their future has never been stronger and we are making it easier for them to do that.
“Our profitable operations are supported by a strong, debt-free balance sheet and give us a secure platform from which to realise our growth ambitions.”
AJ Bell said “trading continued to be strong” in the first quarter, with customer numbers increasing to 172,000 and assets under administration was at £42bn at December 31.
Going public would be expected to boost awareness and knowledge of the group, and provide additional comfort to those investors who are seeking additional reassurance their money is safely invested.
The group has used sports sponsorship to raise its profile in recent years, including putting its name to the City of Salford Stadium in 2013, while it launched its first-ever television advertisement campaign this year.
