UK wealth management firm AFH Financial has announced plans to raise £15m through a placing to fund acquisitions.
The placing is being executed through an accelerated bookbuild of new ordinary shares and will be available to both new as well as existing institutional investors. The shares have been priced at 370 pence per share.
The consolidator has so far made 16 acquisitions in the current year, the most recent being the acquisition of Core Financial Services for a maximum consideration of £7.7m. The company has spent £16m on these acquisitions.
Commenting on the placing, AFH said: “The Board intends to continue to execute its strategy of making selective acquisitions and increasing AFH’s national footprint, whilst providing a professional and cost effective service to its clients.
“The Board believes that the Company remains well positioned to take advantage of consolidation opportunities in the IFA market and currently has a strong pipeline of potential acquisitions that are under negotiation and in due diligence. The Company is undertaking the Placing to provide it with a strong platform to finance such acquisition opportunities.”