Peel Hunt will use the $150.48m it has raised through the IPO to build on a strong year and expand into Europe
Trading in Peel Hunt’s shares got underway on Wednesday following the investment bank’s debut on Alternative Investment Market (AIM).
The firm, which specialises in UK mid and small-cap companies, saw its shares initially jump a penny after debuting at 234.0p on the London Stock Exchange’s sub-market. Gains were pared back as the session proceeded, however, and by 1300 BST the stock was largely flat at 233.41p.
Peel Hunt will use the £112m ($150.48m) it has raised through the initial public offering (IPO) to build on a strong year and expand into Europe.
The City firm – which provides investment banking, research and distribution, and execution and trading services – has benefited from a surge in trading and deal-making during the pandemic, as stock markets fluctuated and companies looked to shore up finances or snap up struggling rivals.
Steve Fine, chief executive, said on Wednesday: Today marks the next exiting chapter in Peel Hunt’s journey after more than a decade of significant growth. We’re delighted to return the company to public markets and take advantage of the opportunity to accelerate our growth plans, building on the strong momentum in our business.
The company and its holders raised 112 million pounds ($154 million) in a placing ahead of the listing, cashing in on months of bustling activity, with clients turning to the markets to raise cash amid the coronavirus pandemic.
Peel Hunt, which is returning to London’s Alternative Investment Market more than two decades after it was first floated, gained 2.4% as it started trading in London. It priced its offering at 228 pence per share, valuing the company at 280 million pounds, it said in a statement Friday.
The firm raised 40 million pounds from the offering to set up an office in Europe, invest in technology and fund regulatory and working capital needs. The U.K.-focused company’s continental expansion comes in the wake of Brexit, with financial firms still awaiting equivalence from regulators.