The financial adviser and wealth manager support firm is expecting the initial public offering (IPO) to take place on Aim – the international market for smaller companies – on 4 April with a market capitalisation of £130m ($181m, €147m).
It is hoping to raise about £30m through the placing of about 18 million ordinary shares valued at 170p each and £34.6m for shareholders through an institutional placing of about 20 million shares, also valued at 170p.
SimplyBiz said 49.9% of ordinary shares will be publicly owned following the placing.
Zeus Capital is acting as broker for the deal.
SimplyBiz said proceeds of the placing will be used to pay down its debt and enable it to embark on “clear and organic plans from a robust financial position”.
The announcement follows a spate of IPO announcements from other firms in the UK financial services space; namely Transact, AJ Bell and Nucleus.
Structure
SimplyBiz was launched in 2002 to provide compliance and business services to financial advisers and financial institutions in the UK. It now has more than 3,400 members on its books, including 2,200 IFA firms with responsibility for £40bn of assets.
It operates via two divisions:
The Intermediary Services Division provides compliance and regulation services to financial intermediary members, including directly authorised IFAs, directly authorised mortgage advisers, workplace consultants and directly authorised consumer credit brokers.
The Distribution Channels Division provides marketing and promotion, product panelling and co-manufacturing services to more than 135 financial institutions, including 43 asset managers, 26 life assurance and pension companies, 46 mortgage lenders, 13 general insurance providers and seven credit lenders.
Next growth phase
Matt Timmins, joint chief executive at SimplyBiz, said: “Our IPO will mark the next stage in our growth story, building on our long, profitable track record.
“Our business is underpinned by strong structural growth drivers and benefits from a highly visible earnings stream. We are well placed to deliver ongoing margin expansion and profitability and look forward to continuing to deliver for our shareholders post-IPO.”
