City broker Peel Hunt plans to turn bosses and employees into millionaires as it prepares to go public in London
Windfall: Peel Hunt’s first IPO would turn CEO Steven Fine (photo) and several employees into multimillionaires on paper
City broker Peel Hunt plans to go into the stock market, bringing a windfall for his bosses and staff.
The company could be valued at between £270 million and £300 million when it starts trading this month on London’s junior market, AIM.
The initial public offering (IPO) would turn Peel Hunt CEO Steven Fine and a number of employees into multimillionaires on paper.
About half of the broker’s 250 employees and directors together own 68 percent of the company. A large part is in the hands of Fine, who led the management buyout of Peel Hunt from KBC bank in 2010.
The rest is owned by a group of private investors, including insurance company Neil Utley.
It is clear that management and staff only intend to sell a small number of shares to cover tax liabilities when the company moves from a partnership structure to a publicly traded company.
The IPO comes after a stellar year for brokers, who brought in fees as they helped companies raise money during the pandemic last year and benefited from a wave of companies deciding to be listed.
Peel Hunt, which provides advice and investment banking services to small and medium-sized businesses, also plans to issue new shares to raise money for its expansion.
It aims to establish a presence in Europe, boost investment in its technology and increase the amount of cash it must have to meet regulatory requirements.
Employees and private investors can collectively buy up to £6.8million shares through the IPO via Peel Hunt’s Rex technology portal.
Fine said, “The IPO allows us to accelerate our growth plans, building on the strong momentum in our business.”
The company has appointed Lucinda Riches, former head of UBS’s equity capital markets, to its board of directors, to succeed chairman Simon Hayes next year.