Hargreaves Lansdown has announced its share price after the firm floated on the stock market last month.
The investment adviser firm says the indicative offer price range has been set at 140p to 160p pence per ordinary share with a total offer size of 118.6 million shares, implying gross proceeds of approximately £178m.
Hargreaves says market capitalisation for the company will be £711m based on the 474.3 million ordinary shares which will be in issue immediately following admission.
The offer will comprise the sale of 25% of the existing ordinary share capital of the firm by existing shareholders, including its founders Peter Hargreaves and Stephen Lansdown.
The remainder will be allocated to certain UK-based staff and institutional investors. No new capital will be raised as part of the offer.
The firm says it is expected the price at which the offer shares will be sold will be announced, and conditional dealings in the ordinary shares will commence, on or around 15 May 2007.
Admission is expected to occur and unconditional dealings in the ordinary shares are expected to start around 18 May 2007.
Executive directors and senior managers are expected to retain “a significant shareholding” in the firm post-flotation and will then be able to sell up to 25% of their holding each anniversary of flotation until 2011, having committed to hold onto stocks for four years.
The execution-only distribution service earned around 67% of its revenue through recurring streams in the six months to Dec 31st, 2006.
Its flagship Vantage service - the direct-to-investor fund supermarket and wrap platform - currently has assets under management of around £7.4bn while the group also manages £1.1bn through its discretionary portfolio management service PMS as well as its multi-manager range which has around £400m in Vantage.
Citi has been appointed as sponsor to the company and as sole global co-ordinator and sole bookrunner.
Numis has been appointed as co-lead manager, while Lexicon Partners has been appointed as financial adviser to the Hargreaves.
Stephen Lansdown, chairman and co-founder of Hargreaves Lansdown, says: “We are pleased to be announcing the publication of a prospectus and the price range for the offer of shares in Hargreaves Lansdown and we look forward to becoming a publicly quoted company and to welcoming new investors to share in the company’s success.”
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