View more on these topics

AJ Bell: IPO is not ‘jobs for the boys’

Bell-Andy-2017-CUTAJ Bell founder Andy Bell has promised that shares in the platform will be available to current users and small investors, not just big financial institutions, as it prepares to list.

Later this year or early next year, the platform will offer a slice of the business to retail investors in a float expected to value it at around £500m.

Speaking to the Financial Times, Bell says: “Too many flotations feel like ‘jobs for the boys’ where the investment banks and fund managers look after each other. Many customers have asked us about buying shares and now they will get a chance.

“Our customers believe in the business. If you believe in a business you want to get into that business as early as possible.”

Platform pressure: Will stock market floats breed adviser conflicts?

Bell tells the FT that while he will be reducing his own stake from 28 per cent to 25 per cent of the company, with Invesco Perpetual also set to sell down from 44 per cent to 25 per cent, no new capital will be raised.

Bell and Invesco will remain the largest shareholders. Star manager Neil Woodford sold down his 8 per cent stake in the business earlier this year.

Currently AJ Bell already pays a 28p a share dividend. The expected valuation would be around 17 times pre-tax profit for this year.

Special report: The future of fixed income

Bell tells the FT he hopes the listing will raise the profile of the company as investors turn away from traditional life companies to cheaper platforms.

“The platform market is growing faster than ever. Some is new money but a lot of money is coming from old style insurance company policies. They are too expensive,”

Recommended

AJ Bell confirms IPO plans

Platform AJ Bell has confirmed it is considering an initial public offering on the main market of the London Stock Exchange, including offering shares to customers. Reports emerged last month the company was considering an IPO and it has now appointed adviser Numis Securities to explore the float, which is expected to take place towards […]

Royal London drawdown sales spike

A spike in drawdown sales has helped Royal London report a 68 per cent increase in individual pension business. The provider says that as “customers continued to take advantage of the pension freedoms”, new business sales of individual pensions including income drawdown in 2017 grew from £3.8bn to £6.3bn. Royal London chief executive Phil Loney […]

Steve Bee
57

Steve Bee: Why still no justice for Waspi women?  

For calls for change to still be falling on deaf ears in 2018 is beyond disappointing There is a serious issue with our pension system today that has been allowed to continue for many years with no resolution. Over 20 years ago, the government decided to require millions of older people in the future to […]

Delivering advice and guidance in the workplace

Three advisers share their ideas and experiences of helping employees with their financial decisions The workplace is instrumental in engaging people to save for retirement. How are advisers helping employers provide advice or guidance to their employees? Telephone guidance Financial education provider and advice firm Wealth at Work recently launched a telephone guidance service to […]

Newsletter

News and expert analysis straight to your inbox

Sign up

Comments

    Leave a comment