Harwood Wealth Management group has started trading on the Aim market for a total value of £45m.
A trading update released on 29 March revealed the financial planning and discretionary wealth management firm started issuing shares at 81p pence, valuing the business at £45m.
Gross proceeds of the placing came to £10m, of which £8.74m went to the company.
News emerged that Harwood Wealth was planning to float on the Aim market and London Stock Exchange earlier this month.
Neil Dunkley, founder of Harwood Wealth, said at the time that completing the initial public offering and raising funds would help steer the company through the next stage of its development, pointing specifically to the firm’s acquisition plans.
He added: “The UK wealth management industry is undergoing a number of changes that have made it very fragmented, providing us with an attractive marketplace for consolidation.”
The group announced the takeover of investment manager Wellian Investment Solutions in May last year following the acquisition of Meon Valley Financial Planning.
Dealings in its ordinary shares started today under the ‘HW’ symbol.
London-based firm N+1 Singer, which is the sole broker to the company, raised £13.5m in an over-subscribed fundraising effort, of which £10m was raised as new equity for the company.
Mr Dunkley said the proceeds would mostly be used to fund further takeovers and pay for infrastructure costs.
Adviser view
Frances Kemp, IFA at Norfolk-based Nurture Financial Planning, said: “The financial advice profession has undergone some significant changes over the past few years which has led to many IFAs leaving.
With the pressures of higher qualification, greater capital adequacy, higher levies and greater regulation, I’m not sure standing still is a sustainable solution.”
katherine.denham@ft.com
