Premier Asset Management are due to start trading on London’s AIM market this Friday following a £63.7mln share sale.
The fund manager that focusses on retail investors is valued at just under £140mln though the IPO process.
New shareholders will own 45.6% of the company following the AIM float.
Premier, described as a “fast-growing and profitable UK retail asset management group”, intends to start paying quarterly dividends during the 2017 financial year.
A combination of new and existing equity is being sold in the IPO.
Some £47mln of the IPO proceeds will be banked by Premier, though a portion of the cash will repay preference shares held by its private equity backer Electra Partners.
Electra, which is also selling a portion of its holding in the IPO, will receive a total of £36mln – a mix of proceeds from the share sale as well as Premier’s preference share redemptions – and it will retain an 8.1% equity stake in the listed company.
A further 33.2% of Premier’s shares are held by Queripel Partners.
Electra, Queripel and certain members of the senior management team have agreed to ‘lock-up’ arrangements that will prevent further selling of shares for a fixed period.
In a separate statement, Electra said its remaining stake in Premier would be worth at £10mln and it was subject to a six month lock-up. It added that as a result of the IPO it had seen a 39%, £13mln, uplift in the value of its stake in Premier Asset Management since March 31.
Story by ProactiveInvestors