Peel Hunt’s return to the stock market should see it valued at between GBP370mln and GBP300mln, according to the Reuters news agency.
It will be the second time the company has floated on AIM; the first time was in February 2000 but its time as a publicly listed company lasted just 10 months before Belgium’s KBC took it over.
Staff and investors bought the company off the Belgian bank in 2010, since when it has been majority-owned by current and former members of staff.
Today’s announcement of its imminent return to listed status comes on the back of an investment boom during the pandemic that has contributed to strong growth in the investment house’s retail trading platform, which accounted for 47% of all UK retail (stockbroking) trade in the year to the end of March, up from 19% in the year to the end of March 2017.
The trading platform makes markets in over 10,000 instruments in 38 markets and is an increasingly important provider of trade execution services to the UK retail platforms and brokers, Peel Hunt said.
The broker is expecting its listing and increased access to capital markets will enable it to accelerate growth in all of its businesses, help it establish a European presence and fund future increases in regulatory and working capital.
Coinciding with the flotation will be an intermediaries offer and an offer to staff that will raise a maximum of GBP6.8mln.
Simon Hayes, the chair of Peel Hunt, has indicated his intention to step down from the board at the conclusion of the company’s annual general meeting in 2022 but will stay around to ensure an orderly transition.
His successor will be Lucinda Riches, who has joined as a non-executive director and will become deputy chair and the senior independent director when the company floats.
“The group has seen significant growth as a private company and now is the right time for it to return to the public markets, with many exciting opportunities ahead. I am delighted that Lucinda will be succeeding me as chair and look forward to working with her during a period of transition through to the AGM next year,” Hayes said.
Riches, who was previously the global head of Equity Capital Markets at UBS, said she was excited to be joining the board.
“Peel Hunt is a high-quality diversified investment banking business, with a well-known and highly respected brand across the capital markets,” she said.