MHA: Full steam ahead on IPO despite turbulence in global markets
The UK arm of Baker Tilly, MHA, has said its planned IPO is still “very much on track” despite the current turbulence in global stock markets resulting from Trump’s tariffs.
The accountancy firm revealed in March that it was set to launch an IPO on London’s junior stock market AIM. Law firm Freeths advised the firm on its upcoming flotation.
Despite the global stock market turbulence due to President Trump’s tariff war, the firm has confirmed it is still planning to float next Tuesday.
Rakesh Shaunak, managing partner and group chairman of MHA, said: “Our intended IPO remains very much on track with a proposed launch date of 15 April despite the current turbulence in global stock markets, which is an indication of how well received our offering has been to investors.”
“An important part of our decision-making throughout this process and why we chose the IPO route is that it enables all our staff to have a stake in MHA plc,” he added.
Shaunak added that staff will have “the opportunity to purchase new shares in MHA plc at the same price as all incoming investors at IPO, through the retail offer” starting this Thursday.
When the firm announced its plans to float, it targeted a £350m valuation and aimed to raise to £125m in the coming weeks.
However, according to an announcement on the London Stock Exchange this morning, up to £101.8m is to be raised, comprising a placing of £95.8m as well as a retail offer of up to approximately £6m new ordinary shares, as well as enabling a sell down by “certain partners”.
The market update also highlighted an anticipated market capitalisation on admission at the placing price, which would be £269m.
Commenting on the revelation, Dan Coatsworth, investment analyst at AJ Bell stated that MHA is “brave to go ahead with an IPO in the current environment”.
He noted that “the last thing MHA will want is for its share price to be weak as soon as the stock begins trading” as it “would send a negative message to prospective investors”
He stated that MHA “must be banking on markets stabilising before it makes its stock market debut on 15 April.”
“The combination of new tariffs on UK exports to the US and higher employment-related costs for UK businesses linked to Rachel Reeves’ Budget last October create a difficult backdrop for British companies. There is a chance that business and economic activity slows and that could create a headwind for MHA given its role as an accounting and professional services firm,” Coatsworth added.
MHA’s rival, Grant Thornton, has taken a different route for investment with its UK partners in December voting in favour of investment from private equity firm Cinven.
In July, MHA reported that its revenue over 2024 jumped by nearly 30 per cent to £180m. While over the last four years, the firm doubled its revenue from £90m (2020) to £180m (2024).