City broker Peel Hunt to debut on London market

Peel Hunt is to float on the London market, the City firm confirmed on Tuesday, as it looks to build on a strong year and expand in Europe.

The specialist in small and mid-cap companies has benefited from the surge in trading and deal-making seen during the pandemic, as stock markets fluctuated and companies looked to strengthen finances or snap up struggling rivals.

In the year to 31 March, Peel Hunt - which provides investment banking, research and distribution, and execution and trading services - generated revenues of £196.8m, more than double the £95.5m it made in 2020. A total of 47% of all UK retail equities were traded on its platform during the year, compared to 19% in 2017, it said.

Chief executive Steven Fine said: "This initial public offering represents an important milestone in our journey and allows us to accelerate our growth plans, building on the strong momentum in our business."

The company intends to use proceeds from the float to establish a European presence, invest in proprietary technology, and to fund future increases in regulatory and working capital. It will also seek to grow all areas of its business.

Admission to Aim, the London Stock Exchange’s junior market, is expected to happen at the end of this month.

Peel Hunt also announced on Tuesday that Lucinda Riches, the former global head of equity capital markets at UBS, would join the board as senior independent director before taking over as chairman when current incumbent Simon Hayes steps down next year.