(Gart)more for less

11 December 2009 By Nicholas Paisner

The fund manager s IPO will price at 220p, below the targeted range. Buyers didn t quite believe talk that Gartmore could double earnings next year. And with financial stocks struggling a little and a disappointment from peer Man Group, a lower price was in order.

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The initial public offering of Gartmore, a UK fund manager, was priced at 220 pence per share on Dec. 11. That is below the initially targeted price range of 250330 pence.

At the IPO price, the company will have a market capitalisation of 676 million pounds ($1.1 billion). Shares will begin conditional trading on the London Stock Exchange on Dec. 14. Gartmore will raise 280 million pounds of new equity in the offering, increasing its share capital by around 70 percent.

San Franciscobased private equity firm Hellman & Friedman will sell approximately 10 percent of its shares, reducing its postIPO holding to 31 percent. Staff will sell roughly 20 percent of their shares, cutting their postIPO stake to 19 percent.

Gartmore had assets under management of 21.8 billion pounds as of Sept. 30. UK and European retail funds accounted for 55 percent of assets, while hedge funds accounted for 17 percent. The remaining 28 percent was institutional money.

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