Broker AJ Bell aiming for £500m London IPO

The Square Mile - London's Financial District
AJ Bell lines up £500m London IPO (Source: Getty)

Broker and investment platform operator AJ Bell has appointed advisers to explore an initial public offering (IPO) on the London Stock Exchange which is expected to value the company at £500m.

The float would include a retail share offer available exclusively to AJ Bell’s customers and is set to take place in late 2018 or early 2019.

AJ Bell’s chief executive Andy Bell said: “An IPO is a natural next step in our journey and will provide a further boost to our future growth through the increased profile a stock market listing will give.

“We now have 172,000 customers and I want them to be able to share in our success by giving them exclusive access to the offer.”

Read more: Star manager Woodford invests £21m in brokers AJ Bell

In the 12 months to 30 September 2017 AJ Bell reported revenue of £75.6m, a 17.2 per cent increase on the previous year, while pre-tax profit increased by 29.1 per cent to £21.7m.

In the quarter to 31 December the company said that customer numbers increased to 172,000 and its assets under administration grew to £42bn.

The company does not plan to raise any new capital via its flotation and said that Bell and investment manager Invesco Perpetual will remain cornerstone shareholders post-IPO.

Invesco is currently the largest shareholder in the company with a 44 per cent stake, while Bell is the second largest shareholder with a 28 per cent stake.

The company has appointed broker Numis, law firm Pinsent Masons and accountancy firm KPMG to advise on its potential flotation.

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