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AFH to raise £6.5m in acquisition push

AFH Alan Hudson 700

IFA consolidator AFH Financial is aiming to raise up to £6.5m in new funding through a share offering.

The AIM-listed firm has issued 2.7m placing share at 165p each and 1.2m subscription shares also at 165p per share.

AFH says the placing price is discounted at 12.7 per cent compared to the closing share price on 8 December.

Money raised will be used to fund the purchase of more adviser firms and meet increased capital requirements as the firm grows.

The company says it is aiming to make a series of acquisitions in the first half of 2016.

Last week, Money Marketing revealed the FCA’s probe into consolidators’ acquisition processes.

Chief executive Alan Hudson says: “We are delighted to raise additional funding of up to £6.50 million from both existing shareholders and new investors to enable AFH to continue to execute upon its growth strategy.

“We look forward to welcoming our new shareholders on board, including the River and Mercantile UK Micro Cap Investment Company and Octopus Investments, and we would like thank our existing shareholders for their continued support.

“We believe our shareholders will see the benefits of our growth strategy in the years to come.”

At the last round of fundraising, in May, AFH raised £750,000 alsio through a share issue.

In July, AFH acquired Quest Financial Management and Phoenix in deals worth £1.1m.

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