IFA firm Hargreaves Lansdown has confirmed its Initial Public Offering on the London Stock Exchange has been set at 160p a share, which implies a market capitalisation of around £759m.
The firm says the IPO will comprise of 118,579,725 Offer Shares – representing around 25% of the existing ordinary share capital of the company and a total offer size of £190m - of which 79,086,775 have been allocated to institutional investors and 39,492,950 to certain eligible existing clients and employees of Hargreaves Lansdown.
As a result the existing company shareholders – including founders Peter Hargreaves and Stephen Lansdown; certain current and former employees of the company and the firm’s employee benefit trust - will together retain a shareholding of around 75%.
In addition, it says Hargreaves, the chief executive, and Lansdown, the chairman of the firm, will together own approximately 60% of the company following admission to the LSE.
Further details of the IPO confirm executive directors and the senior management team have each committed to hold their remaining shares for up to four years following admission, although each person will be able to sell 25% of their post-admission shareholding on or after each announcement of the company’s annual results for the years ended 30 June 2008, 2009, 2010 and 2011.
The firm also reveals Citi has been appointed as sponsor to the company and as sole global co-ordinator and sole bookrunner in relation to the offer, while Numis has been appointed as co-lead manager, and Lexicon Partners as the financial adviser to the company.
Hargreaves Lansdown says the Institutional Offer Shares have been placed with a broad range of institutional shareholders, but says no new capital has been raised as part of the offer, and there is no over-allotment option, despite the order book for the Offer Shares being ‘many times’ subscribed.
Conditional dealings are expected to start on the London Stock Exchange at 8.00am today and admission to the Official List of the Financial Services Authority and commencement of unconditional dealings is expected to take place at 8.00am on 18 May 2007.
Lansdown says: “We have been very pleased with the response to the offer and are delighted to announce the pricing of the IPO and to welcome new investors in Hargreaves Lansdown. We look forward to Hargreaves Lansdown being a publicly quoted company and to continuing to take advantage of the growth opportunities available to us.”
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