Listed independent advice group AFH Financial has raised an additional £2.8m to fund further adviser firm acquisitions, through a mixture of new equity and corporate bond issuance.
In an announcement on London-based Icap Securities and Derivatives Exchange (ISDX), AFH Financial Group said the proceeds will be used to provide additional working capital for the company and to finance potential future acquisitions.
Under the equity issue, the company has received firm commitments to subscribe for a total of 1.9m ordinary 10 pence shares at a price of £1.09 per share, raising a total of £2.1m gross of expenses.
Under the bond issue, the company has received firm commitments to subscribe for £752,000 worth of 8 per cent corporate bonds. Application will be made for the bonds to be admitted to trading on the ISDX Growth Market and admission is expected to become effective on 16 September.
Since AFH’s June 2011 flotation the company has completed 14 acquisitions and adviser numbers have grown from 53 to 120. The company said it paid a maiden dividend in May 2013 and remains debt free, it said in a statement.
Alan Hudson, chairman and chief executive of AFH, said: “Today’s fundraising is a strong endorsement of the company’s organic and acquisitive business strategy, executed against the background of a tight credit market.
“We are pleased to have received this strong level of support from the investment community and look forward to moving ahead with our strategy to become a leader within our field. AFH is well funded, debt free, dividend paying and perfectly positioned.”
