Peel Hunt plans IPO on AIM after bumper year

City broker and small and mid-cap focused investment bank Peel Hunt intends to float on London’s AIM market after a bumper year when revenues more than doubled.

The firm, run by chief executive Steven Fine, will list on the AIM market on 29 September, it said in a statement.

Like many City-focused brokers, the investment bank has enjoyed a stellar year as fundraising on UK markets has soared. It made £196.8m over the past year, up from £95.5m.

The bank has also hired Lucinda Riches, who previously headed up equity capital markets at UBS, to its board. She will eventually replace Simon Hayes as chair, it added.

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Traditional City brokers like Peel Hunt and Numis were hit by the implementation of the second iteration of the Markets in Financial Instruments Directive — sweeping European regulation that requires banks to charge separately for research. Many have looked to expand beyond their roots, instead reinventing themselves as fully fledged investment banks serving small and mid-cap clients.

Peel Hunt has maintained the size of its research function, however, and now serves 1,200 clients, it said in a statement. It also has 157 corporate clients with an average market capitalisation of £775m. The bank finished top of Institutional Investor’s research rankings for companies covering small and mid-cap stocks.

“We’re delighted to announce our intention to admit to trading on AIM,” said Fine in a statement. “Having expanded significantly over the last ten years, Peel Hunt is now well established as a leading UK mid and small-cap focused investment bank. The IPO represents an important milestone in our journey and allows us to accelerate our growth plans, building on the strong momentum in our business.”

To contact the author of this story with feedback or news, email Paul Clarke

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