Hargreaves Lansdown will be valued between £650m and £700m, IFAonline has learnt.
The Bristol-based firm, one of the UK’s largest sellers of investment products with £8.3bn assets under administration, this morning confirmed it will float on the London Stock Exchange (LSE) next month.
It is still too early for any indication of IPO share price, although thist is expected within the next couple of weeks.
According to the statement issued, the initial offer period (IPO) should be completed by mid May 2007 and will see around 25% of shares are being sold by existing shareholders – including its founders Peter Hargreaves and Stephen Lansdown – while the remainder will be allocated to certain UK-based staff and institutional investors.
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.
Stephen Lansdown, chairman and co-founder of Hargreaves Lansdown, says: “We are pleased to offer new investors the opportunity to share in the success of Hargreaves Lansdown and look forward to entering a new and exciting phase in the company’s development.”
The investment adviser and 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.
Chief executive Peter Hargreaves and chairman Stephen Lansdown set up the firm in 1981. Each holds about 40% of the firm, with staff owning the rest.
Hargreaves Lansdown owns one of the UK's largest so-called fund supermarkets, a low-cost platform that allows investors to buy a wide range of funds from investment houses as well as a stockbroking service.
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