AJ Bell to float with £675m market cap

AJ Bell to float with £675m market cap

Stockbroker AJ Bell will be valued at up to £675m when it floats on the stock market on Friday, December 7.

In an announcement to the stock exchange this morning, the company announced it would publish its prospectus today (27 November) and will its shares will float with a price range of between £1.54 and £1.66 each, implying a valuation for the business of between £626m and £675m.

The initial public offering (IPO) will comprise only existing shares being sold, and will be available to institutional investors and clients of the firm.

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Andy Bell, chief executive of AJ Bell, said: "There has been significant interest in our IPO which reflects the potential for expansion in our market, the strength of our business model and our track record of sustainable growth.

"The application period for the IPO is due to open later today and our customers will be able to apply for shares via our investment platform where they will find the prospectus to help inform their decision."

Fund houses Seneca and Invesco will sell a small proportion their shares and then be subject to a six month lock-in period preventing any further disposal of the shares. Employees selling shares after the IPO date will similarly be subject to a lock-in period for 50 per cent of the shares they own.

In its most recent set of results, covering the period to September 30 2018, AJ Bell's assets under administration grew to £38.6bn, an increase of 25 per cent.