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Jupiter to float in June

Jupiter Asset Management has announced its intention to float on the LSE in June.

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The asset manager believes the June flotation, which will see new shares offered to retail and institutional clients globally as well as retail clients in the UK, could raise gross proceeds of up to £220m.

Jupiter said this new money would serve to help it retain and attract talented employees as well as providing the company’s shareholders with liquidity and a transparent valuation for their shareholding.

According to a report in the Financial Times, the listing could value the company at around £1bn and could net 500 of its key staff more than £500m including chief executive Edward Bonham Carter and high profile managers Tony Nutt, John Chatfield Roberts and Philip Gibbs.

The firm said while the global offer would contain a secondary share element existing shareholders, such as TA Associates the US private equity firm which backed Jupiter’s buy-out from Commerzbank in 2007 which owns a 20% stake in the business, will retain significant share positions after the float.

There had been speculation in March, as reported by Portfolio Asdviser, that Jupiter had intentions to float after it confirmed a request to creditors to approve a change in its £375m loan papers – often a prerequisite of a stock market flotation. It also follows the flotation of rival Gartmore in December which has been disappointing at best. Shares in Gartmore were initially floated at 220p but now trade at around 144p.

"Jupiter has flourished over recent years, despite the challenges of the financial crisis,” said Bonham Carter.

“Strong new business growth has been built on the firm foundations of a robust investment culture and a well-established brand, resulting in resilient revenues and earnings. We have started 2010 in great shape with an encouraging outlook for our business and excellent opportunities for further growth, both in our core UK market and internationally."

At the end of last year, Jupiter had £19.5bn of assets under management (AUM), including £14.7bn of AUM in 47 mutual funds and, according to data from the IMA and Lipper, was the fifth largest fund manager of UK retail mutual funds by AUM at 31 December 2009 and the fourth largest by net and gross sales in 2009.

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