Financial advice consolidator AFH plans to raise £15m to carry on buying adviser businesses by issuing new shares.
Over the past 12 months the Aim-listed business has spent about £16m on 16 acquisitions and it now feels it needs more cash to continue consolidating.
AFH said it had a "strong pipeline" of potential acquisitions which were either under negotiation or going through due diligence.
In a statement out this morning (16 October), the company said: "The board intends to continue to execute its strategy of making selective acquisitions and increasing AFH's national footprint, whilst providing a professional and cost effective service to its clients.
"The board believes that the company remains well positioned to take advantage of consolidation opportunities in the IFA market and currently has a strong pipeline of potential acquisitions that are under negotiation and in due diligence.
"The company is undertaking the placing to provide it with a strong platform to finance such acquisition opportunities."
The money will be raised by issuing around 4 million shares worth £3.70 each.
The past two months has seen a flurry of acquisition activity from AFH, with six deals reached since late August, including the £7.7m acquisition of Core Financial Holdings in the beginning of October, its largest of 2018 so far.
damian.fantato@ft.com
