AJ Bell, an investment platform, has made a strong debut on the stock market amid a sharp rally by the leading stocks during the close of a tumultuous trading week. It saw the share price of the company increase dramatically on its first day of trading, having initially been valued at £651 million.
Last month, the firm announced that they would be debuting on the stock market on the 7th of December. Earlier this week, the company set its offer price at 160p per share.
However, the investors sent the share price of the company up by more than a third during the morning session. It reached just over 216p per share, an increase of 33.6 percent in a big boost to the newly listed company.
The fund manager at Seneca Investment Managers, Richard Parfect, stated: “We’re pleased that AJ Bell has reached this stage in its evolution. We look forward to continuing to play a part in the growth of AJ Bell and are delighted that one of our funds’ earliest investments has been such a material benefit to our investors.”
He added: “Well structured, easy to use, and fairly priced platforms have a compelling place to enable customers to manage their savings portfolios. A market listing should help raise the profile of the platform and it’s feasible that others will follow.”
The company has been undeterred about going public despite various disappointing listings in the past months amid the concerns over market volatility and the upcoming Brexit.
Mr Bell, its founder, has lessened his stake in the IPO down to 25 percent from 28 percent, while Invesco has also sold some of their shares, from 44 to 25 percent.
The employees of the company are set to make £2 million between the 750 of them as a result of the listing, which was able to raise £169.3 million.