Listed IFA AFH Financial has raised almost £3m prior to its first day of trading on the Alternative Investment Market.
As part of the Aim admission, the group has raised £1.46m (before expenses) by way of a placing and subscription of new ordinary shares of 10p each with new investors and existing shareholders at a price of £1.40 per share.
Another £1.46m was raised on behalf of Alan Hudson, chief executive of AFH Financial Group. by the sale of 1.04m ordinary shares of 10p each.
John Wheatley, non-executive chairman, bought 32,857 shares, Toby Denne, chief investment officer, purchased 178,571 shares, and Paul Wright, chief financial officer, snapped up 35,000 shares.
Last week Mr Hudson said: “We see this move as an excellent way of attracting new and talented advisers.
“There is a huge comfort factor for advisers to know that the financial affairs of their clients are being managed by a publicly quoted business, with the high degree of transparency that it brings.
“We believe it is firmly in line with the post-RDR model of advice that calls for a highly professional business structure.”
Mr Hudson said the Worcestershire-based group had attracted advisers in increasing numbers since its listing on ISDX in 2011.
He said: “Two-thirds of our advisers have approached us proactively; only a third of them have come through business acquisition.”
