UPDATE: AJ Bell founder to sell stake worth around GBP30 million

(Alliance News) - AJ Bell PLC's founder will sell just under a 2% stake in the company through an ...

Alliance News 23 May, 2024 | 4:52PM
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(Alliance News) - AJ Bell PLC's founder will sell just under a 2% stake in the company through an accelerated bookbuild, bookrunner Numis Securities Ltd said Thursday.

Andy Bell will sell 7.5 million shares in the Manchester, England-based retail investment platform, a 1.8% chunk of its existing issued capital. According to a regulatory filing in January, Bell had just under a 21% stake in the firm he founded in 1995.

The shares will be sold through an accelerated bookbuild, with Numis acting as sole bookrunner. AJ Bell will not net any proceeds.

"The sale is subject to demand, price and prevailing market conditions," Numis added.

The stock jumped 11% to 403.00 pence each in London on Thursday, on the back of well-received earnings.

At current prices, the stake being sold by the founder is worth GBP30.2 million.

"The remainder of AJ Bell shares held by the selling shareholder following the placing will be subject to a lock-up which ends 90 days after launch of the placing," Numis added.

Earlier Thursday, the firm said it raised its interim dividend by more than 20%, and expressed confidence in its long-term outlook amid a jump in profit.

Pretax profit jumped 47% to GBP61.4 million in the six months to March 31 from GBP41.9 million a year prior.

Revenue climbed 27% to GBP131.3 million from GBP103.6 million. Notably, investment income surged to GBP2.9 million from GBP801,000.

AJ Bell declared an interim dividend of 4.25 pence per share, up 21% from 3.50p a year prior.

Also Thursday, it said William Mackay, the managing director of AJ Bell's Advised offering, sold 50,882 shares at GBP3.93 each on Thursday, around GBP200,000 in total. Mackay now owns a 0.4% stake in AJ Bell.

By Eric Cunha, Alliance News news editor

Comments and questions to newsroom@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
AJ Bell PLC 368.00 GBX -1.21 -

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