Hargreaves' adVantage

8 May 2007 By Una Galani Follow @ugalani

At the midpoint, the UK financial adviser’s shares would be priced at a slight premium to peers. That implies no conventional IPO discount. That may seem aggressive, but Hargreaves is a sector star. It has scale and is growing faster than rivals. Its chutzpah may be justified.

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The independent financial advisor Hargreaves Lansdown priced its initial public offering at between 140p160p per share, valuing the group at up to £759m. Hargreaves provides investment products and access to tax efficient savings plans direct to private investors. Unconditional trading of shares is expected on May 18th on the London Stock Exchange.

Cofounders Peter Hargreaves and Stephen Lansdown together hold an 80% stake in the group. The offer, which represents 25% of existing share capital, will reduce their combined holding to 55%, with the remainder held by employees and outside shareholders. Hargreaves and Lansdown will remain in majority control of the group.

The listed company will be large enough to enter the FTSE250. Citigroup is advising.

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