DWF confirms £75m float on the London Stock Exchange
DWF has confirmed that it is to float on the main market of the London Stock Exchange and expects to raise around £75m, which it will “invest in operations and infrastructure including in additional IT systems and certain strategic initiative change programmes in support of its managed services work.”
The Manchester-headquartered firm confirmed its intention to float today (8 February). Whereas the likes of Keystone Law floated on the AIM stock exchange, DWF will trade on the main market, which imposes higher standards of regulation and corporate governance and costs more to list. Firms looking for a standard listing must have an expected market value of at least £700,000. There is no such requirement for AIM-listed businesses.
DWF said that in addition to investing in its infrastructure, the money raised will fund working capital for general corporate purposes as well as potential funding for future acquisitions.
The firm plans to undertake a reorganisation of its structure, governance and internal contractual arrangements and will be renamed DWF Group Plc.
Floating is a way for firms to escape the partnership model and raise funds for investment in technology and other growth objectives. The money will be used to repay members’ capital contributions, leaving around 25% of the share capital free to outside investors.
Shares owned by members are subject to a five-year lock up.
It is expected that admission will take place in March 2019.