Broker AJ Bell aiming for £500m London IPO
Broker and investment platform operator AJ Bell has appointed advisers to explore an initial public offering (IPO) on the London Stock Exchange which is expected to value the company at £500m.
The float would include a retail share offer available exclusively to AJ Bell’s customers and is set to take place in late 2018 or early 2019.
AJ Bell’s chief executive Andy Bell 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.
“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.”
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In the 12 months to 30 September 2017 AJ Bell reported revenue of £75.6m, a 17.2 per cent increase on the previous year, while pre-tax profit increased by 29.1 per cent to £21.7m.
In the quarter to 31 December the company said that customer numbers increased to 172,000 and its assets under administration grew to £42bn.
The company does not plan to raise any new capital via its flotation and said that Bell and investment manager Invesco Perpetual will remain cornerstone shareholders post-IPO.
Invesco is currently the largest shareholder in the company with a 44 per cent stake, while Bell is the second largest shareholder with a 28 per cent stake.
The company has appointed broker Numis, law firm Pinsent Masons and accountancy firm KPMG to advise on its potential flotation.