AFH Financial Group is proposing to raise gross proceeds of £10 million through placing new ordinary shares in the capital of the company at a price of 175 pence per share, in order to raise money for further acquisitions.
If interest in purchasing the shares exists, chief executive Alan Hudson has agreed to sell up to 1,000,000 existing ordinary shares owned by him at the placing price of 175 pence in order to raise up to £1.75 million.
Liberum Capital is acting as a nominated adviser, broker and bookrunner in connection with the placing of the shares, which will be launched immediately and made available to eligible new and existing institutional investors.
AFH has announced five acquisitions since 31 October 2016, and had cash balances of £4.1 million at 1 March 2017. The company’s board believes the net proceeds of the placed shares will allow the company to acquire appropriately priced business as well as providing funds for ‘general corporate purposes’.
Currently, the investment management firm has four potential deals at various stages of the due diligence and engagement process.
At the end of February, AFH made its fifth acquisition of the year by acquiring Bay Financial Management Limited, an IFA based in Honiton, Devon. As a result of the acquisition, Bay directors Seamus Coleman, Simon Durant and adviser Nigel Hull joined the AFH Group.