CompaniesMar 29 2016

Harwood Wealth floats for £45m

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Harwood Wealth floats for £45m

Harwood Wealth Management group started trading on the Aim market today for a total value of £45m.

A trading update released today (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 completing the initial public offering and raising funds with help steer the company through the next stage of its development, pointing specifically to the firm’s acquisition plans.

“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 will mostly be used to fund further takeovers and pay for infrastructure costs.

Frances Kemp, IFA at Norwich-based Nurture Financial Planning, said: “The financial advice profession has undergone some significant changes over the last 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.

“We have seen a few advisory firms sell to insurance companies and no doubt a few more will.

“This may be great for its shareholders, but perhaps not so much for its clients. In my mind, floating is a much better option than selling out to an insurance company and losing the independent status.”

katherine.denham@ft.com