Peel Hunt aims to cash in on London’s stock exchange bonanza in a listing that values a broker at £280m
Peel Hunt is looking to cash in on the London stock market bonanza in a listing the broker values at £280 million.
It has raised £112 million ahead of a float it will use to expand into Europe and invest in new technology. Shares of Peel Hunt will begin trading at 228p on AIM on Wednesday.
The top list will turn many of its 250 employees into paper millionaires, while chief executive Steven Fine could earn £20 million from his 7 percent stake. Fine said he was “pleased with the positive reception of our IPO, with strong support from both institutional and private investors.”
Boost: Peel Hunt has raised £112 million ahead of a float it will use to expand into Europe and invest in new technology
He added: “I am also delighted that even more of our dedicated and talented employees are now shareholders following their participation in the employee stock offering and I would like to thank them for their commitment to making the company the success it is.” .’
The decision to go public comes after earnings have surged amid a frenzy of fundraising and floats since the pandemic struck.
Many companies rushed to raise money during the onset of the Covid crisis last year, while more recently there has been a wave of IPOs and M&A activity as concerns have eased.
All of this has proved lucrative for brokers like Peel Hunt who earn fees for advising their clients on deals and fundraising.
At the same time, its platforms are behind much of the retail trades placed by small investors.
Revenues at Peel Hunt skyrocketed to £197 million in the 12 months to the end of March, up from £96 million the year before.
The group provides financial services such as brokerage, research dissemination and share sales advice for small and medium-sized listed companies. It is the second time that the group is listed on the junior market. The company was briefly listed on AIM in 2000 before being acquired by Belgian KBC Bank less than a year later.
Peel Hunt was founded in 1989 by Charles Peel, a descendant of the founder of the Metropolitan Police, and Christopher Holdsworth Hunt.
In 2010, bosses led a £74 million management buyout in which the company’s top executives, staff and investors, including insurance company Neil Utley, took over.
Yesterday, Mexican fast food chain Tortilla also announced its intention to join AIM.
The company, which has 62 branches in the UK and the Middle East, plans to open a further 45 branches over the next five years. This includes multiple delivery kitchens.
In addition to London, it has branches in other British cities such as Edinburgh and Exeter. Tortilla said it could take advantage of an increasing number of vacant stores that now have more affordable rents.