The company announced in a statement today that it had raised approximately £10m from an institutional placing of 6,410,256 ordinary shares of 20p each, and approximately £41.6m for selling shareholders from a conditional placing of ordinary shares.
Following the placing, 63.5% of the ordinary shares will be owned by the public.
The board said floating the company would position it for its next stage of development and provide it with an “optimal capital structure for future growth”.
Additional benefits cited include enhancing the group’s profile and status with clients, helping incentivise and retain key staff and to create a liquid market in the ordinary shares for existing shareholders.
Paul Hogarth, founder and chief executive of TAM, said: “The IPO of Tatton Asset Management plc marks a very important and exciting milestone in the development of the group, allowing us to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future.”
“I look forward to working with our new institutional shareholders in continuing to build our business further.”
TAM was founded by Hogarth in 2007. It provides a range of services to the directly authorised financial adviser marketplace, including discretionary fund management, regulatory and compliance services and mortgage services.
The group has three operating subsidiaries: Tatton Capital (36%), Paradigm Partners (49%), and Paradigm Mortgage Services (15%).
In the 12-month period to 31 March, the group generated total net revenues of £11.9m and an adjusted operating profit of £5.5m.
