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IPO off as Ascot Lloyd blames low investor interest

Brown Shipley

The planned IPO for financial advice firm Ascot Lloyd has been pulled due to lack of interest from investors and a worried market.

Ascot Lloyd was due to list on AIM as part of its strategy to become a national firm.

The firm, which is in acquisitive mood, recently purchased Harvard Financial Management, a firm based in Dorset. The strategy is to acquire small firms and build a national operation.

Richard Dunbabin, Chief Executive Officer of Ascot Lloyd Financial Services, told staff: “Over the last few months, the senior management team has been actively engaged in preparing the company for an IPO on AIM. Having recently concluded a comprehensive Investor Roadshow schedule, we successfully secured commitments of investment from many prominent financial institutions. However, overall investor interest has been slower than anticipated.

“This is mainly due to the current fears regarding inflation, interest rates rising and potential economic slowdown (not to mention Brexit and the US Presidential election). Institutional investors have been focussed on earmarking their available capital to support existing investments, rather than making new investments, such as Ascot Lloyd. This can also be seen from the number of recent articles in the financial press, highlighting IPOs that either have been withdrawn or have raised less capital at significantly lower valuations than anticipated.

“After extensive consultation with our Advisers, we have decided not to proceed with the proposed IPO. We will reconsider the IPO when market conditions are more favourable and the market is able to fully support the business opportunity that Ascot Lloyd offers for the longer term.

“The business is financially strong and growing, and we are considering alternative options in order to enable us to continue to meet our corporate growth objectives in the short to medium term.”

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