Mortgage Advice Bureau IPO: Housing boom helps broker’s stock flotation

The Mortgage Advice Bureau (Mab) defied choppy markets to price its initial public offering (IPO) yesterday.

 

It has achieved healthy growth this year on the back of a strong housing market, and buyers looking for more help on loans as the prospects of an interest rate rise grow.

 

The loan brokerage is set to brave the stock markets at a time when banks Aldermore and Virgin Money suspended their market debuts.

 

But there are signs the market is recovering. Virgin Money has relaunched its bid, and Mab yesterday priced its offering.

 

The shares are being priced at 160p each, valuing the company at £80.8m. 

 

Existing shareholders are selling stock amounting to a 45 per cent stake in the firm, raising £36.3m.

 

The shares will trade on the Alternative Investment Market (Aim).

 

The flotations market boomed at the end of last year and into this summer, with years of pent-up supply finally coming on to the market as sellers took advantage of strong equities markets.

 

But a combination of factors, including investor fatigue, the Scottish referendum, the European and Chinese economic slowdowns, the conflict in Iraq and Syria, and Ebola all combined to bring the sector to a grinding halt.

 

A few firms have managed to make it to market, including drinks company Fever-Tree.

 

“We are delighted that Mab has received such strong demand from investors, despite recent turbulent market conditions, recognising Mab’s position as a leading UK mortgage intermediary brand and network,” said chief executive and co-founder Peter Brodnicki, who will continue to hold 36 per cent of the firm.

 

“Mortgage intermediaries play an important role in the mortgage and protection advice process, and since the introduction of MMR [mortgage market review], the intermediary market share has increased.”

 

 

1 Martin Green, managing director in the corporate finance division of Canaccord, led the deal

 

2 Green joined Canaccord in 2011. His prior career included spells at Cenkos and NewSmith, but most of his career was spent at Smith New Court and then Merrill Lynch

 

3 Green is an avid skier and when not at work he prefers to spend the winter season carving down the slopes in France’s three valleys (Meribel, Courchevel and Val Thorens)

 

Also on working on the listing from Canaccord is financial services specialist and director Lucy Tilley, director Peter Stewart and associate Pippa Underwood. MHP Communications worked on media communications