Bolton-based K3 Capital has announced plans to float on London’s junior market as it seeks to challenge the City’s traditional brokers.
The initial public offering (IPO) on the Alternative Investment Market (Aim) is scheduled for next Tuesday, with K3 expected to raise around £17.8m.
The firm, which was founded in 1998, will have an initial price of 95p per share, giving it a market capitalisation of £40.1m.
Proceeds from the float, which FinnCap advised on, will be used to settle its purchase of another business, Triskell, and provide additional working capital for the group.
K3 also today announced the appointment of Ian Mattioli as non-executive chairman. Mattioli was a co-founder of Mattioli Woods Group, and floated the company on Aim as chief executive in 2005. Its market capitalisation grew from £22.5m to around £200m during his tenure.
“I am delighted to be joining the board of K3 at what is a significant milestone in the company’s journey,” he said today. “I have been enormously impressed by the company’s efficient and disruptive model, driven by an ambitious and focused management team.
“The appetite shown from investors in the fundraising is hugely encouraging and testament to both the quality of the business that management have built to date and the potential for further growth with their highly scalable model.”
Chief executive John Rigby said: “We are pleased with the strong response to the placing on Aim, reflecting investors' recognition of the group’s exciting prospects. We look forward to creating value for existing and new shareholders as a quoted company.”