Manchester Evening News

Law firm’s flotation is set to raise £75m

- By SHELINA BEGUM

MANCHESTER commercial law firm DWF has announced its intention to float next month on the London Stock Exchange, raising £75m.

The company will becomes the first legal practice eligible for admission in the FTSE.

In a statement, the firm revealed it will put at least a quarter of the business up for sale as issued share capital for trading on the main market of the LSE.

The cash raised is expected to repay a portion of the members’ capital contributi­on, invest in operations and infrastruc­ture and fund what are described as ‘strategic initiative changes programmes.’

There is also scope for potential funding for future acquisitio­ns.

The company said it will forge ahead with plans to reorganise its structure, governance and internal contractua­l arrangemen­ts.

DWF said it also expects partners, who have received shares in the company in exchange for the capital they have paid into the business, to sell shares as well in connection with the offer.

Partners of the firm will be subject to a lock-up post admission which will expire in April 2024.

Shares will be released from lock-up in tranches, 10 per cent each year following the firm’s financial results and a further 10pc which will be subject to performanc­e.

Locked up equity will also be released in the event an individual becomes a ‘good leaver,’ with provisions to claw back locked up equity if an individual becomes a ‘bad leaver’ or if performanc­e requiremen­ts are not met.

DWF said it would target a dividend payout ratio of up to 70pc of its profit after tax.

The directors plan on declaring the first interim dividend in relation to the six months ending October 31, 2019 and expect that to be paid around February 2020.

The directors expect the initial dividend to account for a third of the total planned amount and a final dividend accounting for two thirds of the total planned amount to be paid in relation to the financial year ended April 30, 2020.

DWF has appointed Stifel Nicolaus Europe and Jefferies Internatio­nal to act as joint global coordinato­rs and Zeus Capital to act as lead manager.

 ??  ?? DWF CEO Andrew Leaitherla­nd
DWF CEO Andrew Leaitherla­nd
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