Peel Hunt seeks to cash in on London Stock Exchange windfall by valuing broker at £ 280million

Peel Hunt is looking to take advantage of the London stock market windfall in a listing that values ​​the broker at £ 280million.

It has raised £ 112million before a float that it will use to expand in Europe and invest in new technology. Peel Hunt shares will start trading on AIM on Wednesday at 228p.

His outstanding roster is expected to turn many of his 250 employees into paper millionaires, while chief executive Steven Fine could make £ 20million with his 7% stake. Fine said he was “delighted with the positive reception of our IPO, with the strong support of institutional investors as well as retail investors.”

Boost: Peel Hunt has raised £ 112million ahead of a float it will use to expand in Europe and invest in new technology

He added: “I am also extremely pleased that an even greater number of our dedicated and talented employees are now shareholders as a result of their participation in the employee shareholding offer and I would like to thank them for their commitment. to make the company the success it is. ”

The decision to go public comes after her income has skyrocketed amid a frenzy of fundraising and floats since the pandemic struck.

Many companies rushed to raise funds at the onset of the Covid crisis last year, while more recently there has been an increase in IPOs and mergers and acquisitions as concerns grow. are appeased.

All of this has proven to be lucrative for brokers like Peel Hunt who charge fees for advising their clients on transactions and fundraising.

At the same time, its platforms are the source of a large part of the retail transactions placed by small investors.

Peel Hunt’s revenue soared to £ 197million in the 12 months ending late March, from £ 96million the year before.

The group provides financial services such as brokerage, distribution of studies and advice on the sale of shares for small and medium-sized listed companies. This is the second time that the group will be listed on the junior market. The company was briefly on AIM in 2000 before being taken over by Belgian company KBC Bank less than a year later.

Peel Hunt was established in 1989 by Charles Peel, a descendant of the founder of the Metropolitan Police, and Christopher Holdsworth Hunt.

In 2010, the bosses carried out a £ 74million management buyout that saw the company’s top executives, staff and investors, including insurance leader Neil Utley, take over the company. ‘business.

Yesterday, Mexican fast food chain Tortilla also announced its intention to join AIM.

The company, which has 62 locations in the UK and the Middle East, plans to open 45 more locations over the next five years. This will include multiple delivery-only kitchens.

In addition to London, it has branches in other UK cities such as Edinburgh and Exeter. Tortilla said it could benefit from a growing number of empty stores that now have more affordable rents.