AFH Financial is looking to move to the Aim stock exchange in the second quarter of this year.
The financial adviser and discretionary fund manager currently trades on the Icap Securities and Derivatives Exchange. ISDX is a London-based stock exchange that allows small and medium sized firms, which tend to carry a greater investment risk than more established or larger firms, to raise finance.
In a statement this morning, AFH says the move will assist the firm in attracting new investors, improving liquidity in its shares and raising additional capital when required.
It also hopes the move will help to attract further acquisition opportunities.
AFH chief executive Alan Hudson says: “We believe that given the fundamentals of the business and the nature of the IFA market, the time has come for a move to Aim.
“The increased profile will assist the company in its aim to expand through strategic acquisitions and organic growth.”
The firm is due to release its results for the year ended 31 October 2013 at the end of March, and says a further update on the move to Aim will be released at the same time.
In September AFH launched a bond issue to raise £752,000 to fund future acquisition deals. The unsecured bonds pay 8 per cent and can be traded on the ISDX.
In today’s announcement, AFH says the bonds, which mature in 2020, will remain on the ISDX.
In August AFH announced it had raised £2.8m from investors via a share issue of 1.9 million shares priced at £1.09 per share.
The company has acquired a series of advice firms in the last 12 months.