IFA consolidator AFH Financial is set to raise almost £3m as it looks to list on AIM next week.
The group has conditionally raised £1.46m through a placing and subscription of
new ordinary shares at 10p each with new investors and existing shareholders at a price of 140p per share.
A further £1.46m has been conditionally raised through a share sale by AFH Financial chief executive Alan Hudson, who has sold 1,044,101 ordinary shares of 10p each at the placing price.
The company says it wants to move from the ISDX Growth Market to AIM “in order to take advantage of AIM’s higher profile, broader investor base, greater liquidity and access to institutional investors.
It plans to continue it adviser acquisition strategy. It is in early-stage acquisition talks with a “number of” advice firms, and is carrying out due diligence on three small IFA businesses.
AFH Financial chief executive Alan Hudson says: “We see this move as an excellent way of attracting new and talented advisers. There is a huge comfort factor for advisers to know the financial affairs of their clients are being managed by a publicly quoted business, with the high degree of transparency that it brings. We believe it is firmly in line with the post-RDR model of advice that calls for a highly professional business structure.”
In April the firm raised £1.6m through a share issue on the ISDX Growth Market where it currently trades.
It first announced its intention to float on AIM in February.
AFH Financial Group PLC currently has 141 employees and 122 self-employed advisers.