AJ Bell IPO – The asset manager is seeking a market capitalisation of between £626m and £675m as it prepares its Initial Public Offering (IPO). The company will join the stock market on 12 December, five days after it sets the final price (which will be based on investor demand). Analysts hadn’t expected the group to set such a high price target for its shares (between 154p and 166p) and had previously been forecasting a market capitalisation nearer to £500m.
But, according to the Financial Times, AJ Bell has almost doubled assets under management over the past three years and has just under 200,000 customers. In its most recent financial year to the end of September the company grew pre-tax profits by 31%, to £28.4m and increased revenue by almost 20%.
Its projected market capitalisation (should investors agree to the price being offered) gives a price to earnings value far lower than its larger rival Hargreaves Lansdown, which dominates…
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