Gateley raises £30m on AIM placement

Commercial law firm announces admission and trading of ordinary shares from 8.00am on Monday 8 June.

Commercial law firm Gateley LLP commences trading on AIM today (Monday, 8 June) after being admitted to the junior London Stock Exchange trading platform, the company has announced.

The trading of ordinary shares commenced at 8.00am; following £30 million being raised pursuant to the Placing of 31,589,937 Ordinary Shares with institutional and other investors. The initial placing price was 95 pence per share.

This puts the market capitalisation at £100 million. Gross proceeds of £5 million and £25 million have been raised for the company and the selling shareholders respectively.

The net proceeds raised by the company will be used to support the transition from the previous LLP structure and for general working capital to support and implement Gateley’s growth strategy.

>See also: European IPO activity up 11% in 2014

Over the last ten years Gateley has grown its revenue by a compound annual growth rate of 14.3% and operating profit by 14.8% through new office openings and expansion, selective acquisitions and increased number of fee earners.

The Board intends to adopt a progressive dividend policy to reflect the expectation of future cash flow generation and long-term earnings potential of the Group.

The IPO and Admission received strong support from staff, partners and significantly from Gateley clients, with approximately 10% of gross Placing proceeds being investments in the Company by Gateley clients.

Gateley CEO Michael Ward said he was delighted that the business has become “the first UK law firm to list on AIM”.

“Today marks a significant achievement for this successful, fast growing and entrepreneurial legal services group,” he said.

“The IPO will provide the platform for the continued success of the business, as well as accelerate its growth opportunities and facilitate value creation through an increased ability to acquire, incentivise, differentiate and where sensible diversify.”

Further reading: Aquatic Foods Group lands £9.3m on AIM flotation

Praseeda Nair

Praseeda Nair

Praseeda was Editor for from 2016 to 2018.

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