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SimplyBiz valued at £130m as it reveals IPO plans

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SimplyBiz valued at £130m as it reveals IPO plans

Support services provider SimplyBiz has confirmed its plans to float with a listing on the Aim stock market next month which it hopes will give it a market capitalisation of £130 million.

Previous plans to float were dropped in May 2015 after the firm decided to retain its independence. At the time SimplyBiz managing director Neil Stevens told New Model Adviser® retaining independence was important for the business, but he did not rule out a float in the future.

Now, following a report by Reuters last month, SimplyBiz has announced in a market update it will be floating on 4 April on the Aim market which is a sub-market of the London Stock Exchange.

The initial public offering (IPO) will raise around £30 million for the company through the placing of ordinary shares valued at 170p per share while £34.6 million will be made by selling shareholdings through an institutional placing. After the listing 49.9% of shares will held by the public.

SimplyBiz will use the proceeds of the listing to pay down debt as well ‘as execute on its clear organic and inorganic plans from a robust financial position’, the update said.

The listing plans follows adviser-owned platform Transact going public last month in an IPO which valued it at £650 million. It also follows fellow support services provider Paradigm, which last year listed as part of discretionary fund manager Tatton.

Currently SimplyBiz chairman Ken Davy (pictured) is the largest shareholder in the company. 

Matt Timmins, SimplyBiz’s joint chief executive, said the IPO marks the ‘next stage in our growth story’ and was confident it will be positive for shareholders.

‘Our business is underpinned by strong structural growth drivers and benefits from a highly visible earnings stream. We are well placed to deliver ongoing margin expansion and profitability and look forward to continuing to deliver for our shareholders post-IPO,’ he said.

Neil Stevens, SimplyBiz’s joint chief executive, said the listing will help improve the status of the SimplyBiz group.

"Our IPO on the London Stock Exchange will further raise the profile of the SimplyBiz group, providing additional momentum to our growth strategy and enabling us to put in place additional incentive schemes for our staff,’ he said.

‘Our new institutional shareholders will deliver long-term capital that will enable us to develop the group in the years ahead; we welcome them on board and look forward to sharing our growth journey together.’

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