Premier Asset Management float allows Electra to cash in

Premier Asset Management Group completed its initial public offering in London on Tuesday, allowing Electra Partners to partially realise an investment by its Electra Private Equity vehicle.

Premier AM, a UK retail asset management group, placed 35.9m new and 12.4m existing shares at a price of 132p apiece, raising a gross £63.7m, of which £47.4m will go to the company.

After the float, Electra and fellow investor Queripel Partners will still own just over 54%, of which Queripel will hold 33%, with both parties and Premier's directors and some senior management agreeing 'lock-up' arrangements not to sell shares for a specified period.

Based on the offer price, Electra's investment in Premier has a value of £46m - an uplift of £13m or 39% on the valuation at 31 March, implying an increase in net asset value per share of 26p.

“On admission, Electra is expected to receive cash proceeds of £36m from the redemption of preference shares and sale of ordinary shares in Premier,” Electra said.

“In addition Electra will hold approximately 8% of the issued ordinary share capital of Premier with a valuation at the offer price of £10m; these shares are subject to a six-month lock-up.”

Shares in Electra Private Equity finished Monday up 0.16% at 4,322p, prior to the announcement.