AJ Bell prepares for IPO with exclusive customer element

Big IPO on the cards

AJ Bell, one of the UK’s leading investment platforms operating in both the direct-to-consumer and advised markets, has appointed Numis Securities Limited to explore an Initial Public Offering (IPO) on the Main Market of the London Stock Exchange.

The IPO would include a retail share offer, available exclusively to AJ Bell customers and is expected to take place towards the end of 2018 or early 2019.

A listing will give investors, including AJ Bell customers, the opportunity to participate in AJ Bell’s future success. The Group does not intend to raise new capital as part of the IPO given its financial strength, highly profitable business model and debt-free balance sheet.

The Group’s two largest shareholders, co-founder and chief executive Andy Bell and Invesco Perpetual, will both retain cornerstone shareholdings post-IPO.

Andy Bell, chief executive, said:

“These are exciting times for our business. Over the last 22 years we have built a multi-award winning and easy to use investment platform that is the engine room of a fast growing and profitable business.  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 us.

“We believe the outlook for our business is extremely positive. The need for people to save and invest for their future has never been stronger and we are making it easier for them to do that.  Our focus on the needs of our customers has resulted in assets invested via our platform increasing by 26 per cent a year on average over the last five years, with total assets under administration hitting £42 billion. 

“Our highly profitable, proven model continues to deliver outstanding performance. In 2017 revenues grew 17 per cent to £75.6m whilst our efficient operating model delivered a 29 per cent growth in profit before tax to £21.7m. We were pleased to grow our dividend by 10 per cent, equating to a 66 per cent pay-out ratio. Our profitable operations are supported by a strong, debt-free balance sheet and give us a secure platform from which to realise our growth ambitions.

“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.”

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