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Transact: we're keeping a promise to shareholders with float

Transact: we're keeping a promise to shareholders with float

When most companies float headlines turn to how much they plan to raise, particularly when technology is involved. 

But Ian Taylor (pictured) has taken a different tack ahead of plan to launch an initial public offering (IPO) for Integrated Financial Arrangements, better known as investment platform Transact. 

'Basically what I'm doing is keeping a promise we made to shareholders 18 years ago.'

Chief executive Taylor said that the company, which last year a pre-tax profit of £37 million and grew its assets under administration to £29.7 billion, has always wanted to reward its earliest investors. 

'Since we started in 1999 the goal was always to let shareholders get their money back at some point,' he said.

'We decided an IPO was the best outcome for all parties involved.'

The float will see existing shareholders sell their shares, rather than Transact creating new shares in order to raise money. Taylor said the lack of debt on the company's balance sheet meant it did not see the need to raise large amounts of capital through the float. 

'Obviously once you are on the market it becomes easier to raise money than when you are not, but there are no plans for that right now.' 

As no new capital is being raised Transact has spoken to its largest 35 shareholders to ensure that at least 25% of the company will end up on the market. 

Taylor is not among the sellers, but executive director, and former chairman, Mike Howard has agreed to sell up to 28% of his holding when the float takes off in March. 

Those advisers who bought shares in Transact as part of an initial offer to firms that recommend the platform will also be able to cash in as smaller shareholders. The platform has occasionally been accused of creating a conflict of interest for IFAs with this scheme, but Taylor cited the fact this scheme ended in 2007 when asked about this. 

'That's all ancient history now,' he said. 'Advisers bought the equity at full market price with the full approval of HMRC.' 

 

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