Listed IFA AFH Financial Group has raised £1.6m to fund further acquisitions, adding to a £3.3m fundraising it completed in two stages through the second half of 2013.
The discretionary wealth management firm said the latest fundraising exercise saw a total of 1,157,854 ordinary shares of 10 pence each, which were all purchased at a price of 140p per share.
The group said: “The proceeds of the subscription, amounting to £1.62m (before expenses), will be used to provide additional working capital for the company and to finance potential future acquisitions.
“Of the ordinary shares to be issued in the Subscription, 507,855 have been allotted and will be admitted to trading on the ISDX Growth Market today (4 April). The remaining 649,999 ordinary shares will be allotted and admitted to trading on the ISDX Growth Market on 7 April 2014.”
In October AFH raised £500,000, adding to £2.8m it raised in August through a share and bond issue to fund further acquisitions.
Most recently AFH bought the assets of Stoke-based independent advisory firm SR Wealth Management in a deal worth around £200,000.
The deal was the 20th completed by AFH since listing on ISDX in June 2011 and is the seventh since the Retail Distribution Review was implemented in January 2013.
The company is set to list on Alternative Investment Market in the second quarter of this year, hoping to raise capital to fund further acquisitions
At the end of last month, the acquisitive IFA announced that its profit before tax rose 250 per cent to £1.05m for the year ending 31 October 2013, up from £300,000 the year before, its final year results state.
Revenue was up 50 per cent to £10.8m, from £7.2m the previous year, with just over half of that representing recurring revenue.
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