Peel Hunt IPO: What to expect from investment banker’s AIM float

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Peel Hunt IPO: What to expect from investment banker’s AIM float

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 Peel Hunt IPO: What to expect from investment banker’s AIM float
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Highlights 

  • Peel Hunt plans to go public on the Alternative Investment Market (AIM) on 29 September 2021.

  • The company’s strong portfolio of clients includes 157 corporate clients and has an average market capitalisation of £775 million.

Peel Hunt, a London-based broker and a well-established small- and mid-cap focused investment bank, plans to go public on the Alternative Investment Market (AIM), a sub-market of the London Stock Exchange (LSE) on 29 September 2021. It is expecting a valuation in a range of £270 million to £300 million.

The announcement for the company’s admission to the AIM came just after it recorded more than double revenues led by the pandemic-driven trading boom. The board believes that an IPO will enable the company to boost its growth plans and build on the strong business momentum. Apart from placing its ordinary shares up for trading on the AIM, the group will also be engaged in conducting intermediaries and roll out new job offers.

Image description: Peel Hunt IPO

(Data source: Company release)

How Peel Hunt maintained its distinctness?

Peel Hunt maintained the size of its research function and currently boasts of a portfolio of over 1,200 clients. Its clientele also includes 157 corporate clients and has an average market capitalisation of £775 million. The bank topped Institutional Investor's research rankings for small- and mid-cap stocks.

Its trading platform operates in more than 10,000 instruments in 38 markets and offers trading services to the UK’s retail platforms and brokers. About 47% of all retail trade value in the UK operated on the company’s platform in the year ended 31 March 2021.

Stellar year for Peel Hunt

Peel Hunt’s revenue grew from £95.5 million in the year 31 March 2020 to £196.8 million for the year ended 31 March 2021, due to an increase in cash borrowings to weather the impact of the lockdown and then sustain a recovery. The bank’s revenues were propelled by the increasing number of fundraisings in the UK market.

Company history

Peel Hunt was established in 1989 and majority-owned by former and current employees, after the staff and investors led a buyout from KBC, a Belgium-based bank, in 2001.

Earlier, in February 2000, Peel Hunt floated on London’s AIM and was bought out by KBC ten months later.

Peel Hunt is headed and run by the CEO, Steven Fine. The investment bank also got on board Lucinda Riches, the former head of equity capital markets at UBS, who will replace Simon Hayes as chair.

Impact of the Financial Instruments Directive

Peel Hunt and Numis, some of the traditional City brokers, were impacted by the implementation of “Markets in Financial Instruments Directive’s” second iteration - sweeping European regulation that needed banks to charge a separate fee for research. Some other investment banking groups are looking for options to expand, instead of reinventing themselves as integrated investment banking institutions that cater to small and mid-cap customers.

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