AFH has increased the size of its share issue after seeing high levels of investor demand.
This morning (15 November) the advice firm consolidator said it was issuing £15m-worth of shares on the London Stock Exchange to fund its acquisition programme.
It has now raised this to £17.5m because of demand, with each share priced at £2.50.
Alan Hudson, chief executive of AFH, said the news was a "resounding vote of confidence" in the business.
He said: "Our current institutional investors have increased their stakes in the group, and we picked up a number of major new institutional investors with this issue.
"Following on the success of our last issue, we see this as demonstrating continuing confidence in the company and an endorsement of its strategy."
The money raised will give AFH a war chest of more than £20m to continue with its plans of growing by acquisition and organically.
In the last financial year AFH notched up 20 per cent organic growth and now serves around 10,000 clients, with £2.7bn under management.
In the past 12 months the company has bought 13 advice firms, plus the protection business of Eunisure.
This has left it with £8m of cash, which it has said is enough to meet the liabilities associated with these acquisitions but it needed to increase its war chest to make more acquisitions.
AFH's latest deal was the purchase of Essex-based Britton Financial Limited for a maximum purchase price of £2.08m.
Mr Hudson said: "Our core business is growing strongly, organically. That growth, allied to our policy of selective acquisitions of businesses that share our client-first vision, gives us better purchasing power and allows us to attract top talent to our adviser team, as well as expanding our in-house expertise and support for advisers and clients.
"Our strategy is all about giving benefit to clients rather than just consolidation for financial engineering."
damian.fantato@ft.com
