AFH Financial announces intention to move to AIM

WORCESTERSHIRE IFA, AFH Financial, has announced it intends to apply for admission to the Alternative Investment Market.

The Bromsgrove company, which currently trades on the ISDX Growth Market, said it hoped the admission could be completed in the second quarter of 2014.

CEO Alan Hudson said it had always been the company’s intention to eventually move to AIM once the environment was right.

The directors of the firm now believe the company has made sufficient progress since its initial flotation in 2011 to make the step up.

“The directors believe that admission to AIM will assist the company in attracting new investors, improving liquidity in its shares and raising additional capital when required,” it said in a statement to the London Stock Exchange.

“The directors also believe that admission to AIM will further enhance the profile of the company and help to attract future acquisition opportunities as the company seeks to expand.”

Preparation for the admission is at an early stage but AFH said a document in relation to the move would be published in due course and a further announcement would be made at that time.

It added that the £752,000  8%  unsecured bonds due 2020, which trade on ISDX under ticker symbol AFHB,  will remain listed on ISDX notwithstanding any withdrawal of the ordinary shares of the company from trading on ISDX at the time of admission.

The company has also announced the appointment of Allenby Capital as its nominated adviser and broker.

Hudson added: “We believe that given the fundamentals of the business and the nature of the IFA market, the time has come for a move to AIM. The increased profile will assist the company in its aim to expand through strategic acquisitions and organic growth.”