AJ Bell soars 30 per cent on first day of trading
SHARES IN AJ Bell rocketed on their first day of trading, bringing the investment firm’s valuation to £651m.
The Manchester-based group confirmed last month that it would press ahead with the initial public offering (IPO), floating a 27 per cent stake, and this week set its offer price at 160p per share.
But buoyant investors sent shares up more than 30 per cent to 213p in morning trade.
Boss and founder Andy Bell said: “The IPO is a significant milestone for the business and I see it as firing the starting gun on our next phase of growth, which I’m massively excited about leading the business through.
“The demand for our IPO from both blue-chip institutions and our own customers was a real endorsement of our business and the market opportunities that lie ahead of us, and I’m pleased to welcome our new shareholders on board.”
Market volatility and Brexit fears have resulted in several disappointing London listings in recent months but, undeterred, AJ Bell said it believed this to be an “appropriate time to bring the group to the public market”.
At a £651m valuation, founder Mr Bell’s 28 per cent stake is worth around £180m and he has trimmed his stake to 25 per cent.
AJ Bell’s 750 staff are also set to pocket more than £2m between them as a result of the listing, which raised £169.3m.
Last year AJ Bell reported revenues of £89.7m, up 19 per cent, and profit before tax up 31 per cent to £28.4m.