- The investment platform confirmed it aims to list on the London Stock Exchange
- Float could come in late 2018 or early 2019 – and will raise AJ Bell’s profile
- AJ Bell customers will have ‘exclusive’ access to part of the share offer
Investment platform AJ Bell has revealed plans to list on the London Stock Exchange later this year – and hopes to tempt its customers into taking part through an ‘exclusive’ share offer.
The popular DIY investing service, which has 172,000 customers who use it to buy and hold funds and shares, wants to float to step up the challenge against giant rival Hargreaves Lansdown.
The firm is not looking to raise money from the initial public offering, but wants to boost growth and enjoy the ‘increased profile’ of a stock market listing, boss and co-founder Andy Bell said.
Andy Bell, co-founder and managing director of AJ Bell (pictured) said the IPO was the ‘natural next step’ in the company’s journey
Existing AJ Bell customers have been promised a retail share offering will be incorporated into the IPO, available exclusively to them.
The company said it has appointed Numis Securities to look into an Initial Public Offering (IPO) on the London market in ‘late 2018 or early 2019’.
Andy Bell said: ‘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.’
He added: ‘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.’
Bell and investment group Invesco Perpetual will remain ‘cornerstone’ shareholders in the company, the firm said.
Neil Woodford, the famous fund manager who has struggled of late, reportedly sold off his 8 per cent holding in the group however, just ahead of the IPO announcement.
AJ Bell posted a pre-tax profit of £21.7million in 2017, with revenues increasing 17 per cent to £75.6million.
It has 172,000 customers and £42billion of assets under administration.