AIM-listed Harwood Wealth Management is to raise £10 million in new equity capital as it concentrates on extending a run of consolidation that saw it complete 17 purchases last year.
The company has priced the issue at 150p, a 14% discount to the recent secondary market valuation. Dependent on demand, the executive team may also place £2 million in their own equity.
The group’s hectic shopping spree last year saw it spend £11.6 million on a string of buys, lifting internal assets 75% to just over £2 billion. Client assets under management more than doubled from £276 million to £693 million.
‘The group has signed heads of terms in respect of a further six acquisitions, at an aggregate estimated consideration of approximately £3.1 million which, if completed, would add an estimated £156 million of AUA [assets under advice],’ the business said in a statement.
‘In addition, the current acquisition pipeline, where proposals or draft heads of terms have been issued to vendors, includes a further nine proposed acquisitions, which would, if successfully completed, add an additional estimated £960 million of AUA at an estimated aggregate consideration of £14.95 million.’
Harwood Wealth was founded in 2001 by Neil Dunkley and Mark Howard as Compass Wealth Management. The group is now led by Wealth Manager cover star Alan Durrant (pictured) and Dunkley, who are joint chief executives.
The company is to hold a general meeting on 18 April with the shares conditionally planned to be placed the following day.
The company has appointed Wellian as discretionary manager to its subsidiary advisers