AJ Bell has revealed that its upcoming stock market flotation could value the stockbroker at £675 million.
Previous estimates of £500 million have been increased as the new price range has been introduced at between £1.54 and £1.66 per share.
Shares in AJ Bell will be up for sale in December when the group floats on the London Stock Exchange.
“There has been significant interest in our IPO which reflects the potential for expansion in our market, the strength of our business model and our track record of sustainable growth,” said chief executive, Andy Bell.
“The application period for the IPO is due to open later today and our customers will be able to apply for shares via our investment platform where they will find the prospectus to help inform their decision.”
Last year, AJ Bell reported a 19% increase in revenues to £89.7 million. Pre-tax profit before tax was up 31% to £28.4 million.
“Our intention to float the business on the London Stock Exchange reflects both our historic achievements and our belief in how much more we can achieve,” said Bell.
“A listing offers us further reputational and commercial benefits that will support our growth plans.”
The firm said it will publish a prospectus later today. AJ Bell’s IPO advisor is Numis Securities.
London has had several disappointing London listings this year including Aston Martin and Funding Circle amid market volatility and Brexit fears, however, AJ Bell remains undettered and says now is an “appropriate time to bring the group to the public market”.
A banker who did not want to be named said of the Aston Martin and Funding Circle debuts: “This is brutal. The IPO market stinks for growth stocks which do not have an earnings track record.”
