Allfunds kept an eye on the Euronext Amsterdam IPO in an effort to secure diverse funding sources

An application will be made for admission to Euronext and the company’s IPO will consist of a private placement of existing shares offered to institutional investors.

LHC3, BNP Paribas Securities Services and Credit Suisse intend to sell a minimum of 25% of the company’s shares, with an over-allotment option for “stabilisation purposes”.

A bitter aftertaste? Deliveroo IPO flop could deter growth stocks from listing in London

Allfunds, which will be renamed Allfunds Group, will not receive any proceeds from the offering but the listing will create access to capital markets, diversified sources of funding and an increase in brand awareness.

It will also build a wider base of long-term shareholders with increased liquidity.

Following admission, the company is targeting a dividend payout ratio of 20% to 40% of adjusted annual profit/loss after tax, with expectations that the 2021 payout will track close to the bottom end of this range.

It is intended that excess cash will either feed M&A opportunities, or special dividends and buybacks.

As of 31 December 2020, the platform had grown to administer €1.2trn in assets while offering roughly 100,000 funds from 1,960 fund houses.

Over the coming years, the group also plans to expand further into regions it currently has a small foothold, with a particular focus on Asia and North America.

BNP Paribas, Credit Suisse Securities, Citigroup Global Markets and Morgan Stanley Europe will act as joint global coordinators while Rothschild & Co is set to act as independent IPO advisor to the firm.

Chrysalis’ Williamson on crossroads that led to new share issuance

Juan Alcraz, founder and CEO of Allfunds, said: “With over €1.2trn in assets under administration, we have grown into what I believe is the largest network of fund houses and distributors accessing a marketplace that operates in 59 countries.

“We have built an ecosystem that covers the entire fund distribution value chain and investment cycle, integrated into a simple one-stop-shop for our clients.

“Allfunds has been gathering momentum over a 20-year journey since I founded the business, but there is still an enormous opportunity to be realised. This listing provides us with the flexibility to accelerate the digital transformation of the wealth management industry and the growth of our best-in-class global platform.

“With the support of leading institutional investors – many of whom are trusted clients, access to global capital markets, and the continued dedication of our employees, we will continue offering our clients unparalleled service and support in a more connected and digital world.”

Leave a Reply