Investment platform provider AJ Bell has confirmed plans to float its shares on the London Stock Exchange next month. The AJ Bell floatation value the company at around £500m.
The company will list around 25% of its share capital, while the indicative price range of the shares as well as the number of stock to be sold will be decided in ‘due course’.
Go deeper with GlobalData
AJ Bell confirmed that all its customers in the UK are qualified to participate in share allocation. The minimum size of the application should be £1,000.
In the following weeks, the company will introduce a prospectus which will include the details of the floatation including the indicative price of the offer.
The share offer will include ‘existing shares to be sold by certain existing shareholders, directors and employees’, AJ Bell said in a statement.
It also added: “The directors of the company believe this is an appropriate time to bring the group to the public market, reflecting the robust foundations established for future growth.”
As a part of the process, AJ Bell’s largest investor Invesco Perpetual will reduce its stake from 44% to 25% to enable the floatation.
AJ Bell floatation earns founder £140m
Founder Andy Bell, who owns 28% of the firm that bears his name, will be worth £140m following the floatation on current estimates. Upon the initial public offering, Bell will cut his stake to 25%, earning him approximately £100,000 in liquidity.
Directors, senior managers and employee selling shareholders are subject to one year lock-in following the date of admission for 100% of their shareholdings. They are subject to additional one-year lock-in period thereafter for 50% of their shareholdings.
Non-employee selling shareholders (ex-employees) will be subject to a 180-day lock-in period in this AJ Bell floatation.
