Tatton Asset Management announces placing, intention to float

Tatton Asset Management announced the results of two placings with institutional investors and its intention to list on the AIM market.

The company raised approximately £10.0m before expenses for the company and £41.6m before expenses for shareholders via the two placings, which were carried out at a price of 156p.

That was expected to give Tatton a market capitalisation of £87.2m when its shares began trading at 0800 on 6 July with, the company said in its announcement.

Zeus Capital Limited, an independent investment banking boutique was appointed as the groups' nominated advisor and sole broker.

Excluding people who had an interest of 10% or more in the company, 63.5% of the ordinary shares "will be held in public hands, following the placing", Tatton said.

The new ordinary shares issued for the first placing would represent about 11.5% of the company's enlarged share capital and the existing ordinary shares sold by shareholders another 47.7%.

For the full-year to the 31 March 2017, the group boasted net revenues of £11.9m and was debt free.

Management highlighted the business's low capital requirements, zero debt and high cash generation.

In terms of dividends, the group "has the capability to deliver a circa 70% dividend pay-out ratio".

The placing was touted as a very important and exciting milestone for the group.

"The IPO of the Tatton Asset Management marks a very important and exciting milestone in the development of the Group, allowing us to build our market profile further, reward our staff and other stakeholders, and provide access to the capital markets when needed in the future."