Interactive Investor IPO: Is it going to be the next blockbuster London listing?

Highlights 

  • Online retail investment platform Interactive Investor is planning an IPO, according to some reports.
  • The company invited investment banks to pitch on being a potential advisor to the public listing.
  • Interactive Investor is reportedly planning a 2022 listing, and the company could have a market valuation of up to £2billion

UK’s second largest fund supermarket platform, Interactive Investor is potentially planning a public listing on the London Stock Exchange (LSE), according to some reports that emerged on Thursday.

Interactive Investor’s potential IPO plans

The Manchester based company is reportedly meeting with several investment banks to float on the market, possibly in 2022. Should the IPO plans materialise, it could have a market valuation between £1.5 billion and £2 billion.

However, there has been no official announcement of floating on the market, and it would depend on market conditions, according to the investment banks.

Interactive Investor’s CEO Richard Wilson had mentioned earlier this year in March to news outlet Financial Times that the company was considering an IPO.

Moreover, the firm had appointed Gordon Wilson as a chair, a part of its plans to publicly list on the LSE.

Related Article: 5 startups that are likely to take the IPO route soon

Interactive Investor’s business performance

Interactive Investor announced its H1 2021 for the six months ended on 30 June recently. Its net revenue rose by 19 per cent to £76.1 million. The company had earlier reported net revenue in H1 2020 of £63.8 million. Also, the company reported a 33 per cent increase in new clients to 31,667.

The company has 400,000 customers and about £55 billion in assets under administration (AUA), making it the second largest fund supermarket in the UK market by size. The only other firm which is larger in size in the UK fund supermarket space is Hargreaves Lansdown.

 

Recent acquisitions

 

The company recently bought the financial company’s Equiniti Financial Services’ EQi direct to consumer (D2C) business worth up to £49 million. The D2C segment had an AUA of £5.3 billion.

Also, in 2019 the firm had acquired Alliance Trust Savings’ direct to customer and advisor business in a deal worth up to £40 million, which had a combined AUA of £36 billion.

Following the Alliance Trust acquisition, Interactive Investor retained its D2C business and went on to sell off the Alliance Trust Savings’ platform to UK-based financial services firm Embark Group.

Bottom Line

The LSE has witnessed a record number of IPOs in 2021, especially in the tech sector, as businesses have increasingly shifted towards adopting newer and innovative digital tools to navigate the pandemic related uncertainty. Thus, fintech firm Interactive Investor’s listing could be the next big event this time.

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