With a placing price of £0.81, the firm raised £10m in gross proceeds. At a net level the firm will receive £8.7m as a result of the placing.
According to the firm, the new capital will be used to provide funds for further acquisitions along with “modest associated infrastructure costs”.
The firm has completed more than 40 business and share purchases since it was founded in 2001 as Compass Wealth Management and now has over 80 FCA-regulated financial advisers, seven investment professionals and assets under influence in excess of £1.25bn.
The group’s recently announced acquisition of Wellian Investment Solutions was also conditional on admission to the exchange.
The UK-based discretionary wealth management group first announced its intention to float on 11 March, pointing out as part of the rationale for listing that the wealth management sector is undergoing a period of significant structural change post-RDR.
As a result, the firm said: “many financial advisory firms have strong client books but unworkable, fragmented models, rising regulatory costs and a need to outsource certain functions or to be acquired.
Not only has the complexity of personal wealth management increased, the firm added, it believes the trend will continue and that “further legislative changes, including the proposed extension of pension freedoms to people with annuities will create a secondary market and present additional opportunities for advice.”
The number of ordinary shares in issue immediately following admission was 55.6m.
