15th May 2007 07:01
Hargreaves Lansdown PLC15 May 2007 This announcement and the information contained herein is not for publication,distribution or release (directly or indirectly) in or into the United States,Canada, Australia or Japan or to a resident, national or citizen of the UnitedStates, Canada, Australia or Japan. The information contained herein does notconstitute an offer of securities for sale including in or into the UnitedStates, Canada, Australia or Japan. This announcement is an advertisement and not a prospectus and investors shouldnot subscribe for or purchase any shares referred to in this announcement excepton the basis of information in the prospectus which has been published by theCompany in connection with the admission of the ordinary shares in the capitalof the Company ("Ordinary Shares") to the Official List of the FinancialServices Authority and to trading on the main market of the London StockExchange plc, together with the pricing statement to be published today (the "Prospectus"). Copies of the Prospectus may be accessed in an electronic form onthe Company's website at www.H-L.co.uk. 15 May 2007 HARGREAVES LANSDOWN Plc ("Hargreaves Lansdown" or the "Group" or the "Company") Hargreaves Lansdown announces IPO Offer Price of 160 pence per Ordinary Share Hargreaves Lansdown today announces that the offer price for the initial publicoffering of its Ordinary Shares (the "Offer") has been set at 160 pence perOrdinary Share (the "Offer Price"), implying a market capitalisation for theCompany of approximately £759 million. The Offer comprises 118,579,725 existing Ordinary Shares ("Offer Shares"), ofwhich 79,086,775 shares have been allocated to institutional investors ("Institutional Offer Shares") and 39,492,950 shares have been allocated tocertain eligible existing clients and employees of Hargreaves Lansdown ("Qualifying Offer Shares"). The Offer Shares represent in aggregateapproximately 25% of the existing ordinary share capital of the Company and atotal offer size of £190 million. No new capital has been raised as part of theOffer. Following a roadshow to investors in the UK, the Institutional Offer Shares havebeen placed with a broad range of institutional shareholders. The order bookfor the Offer Shares was many times subscribed at the Offer Price. Conditional dealings are expected to commence on the London Stock Exchange at8.00am BST today under the ticker symbol "HL.". Admission to the Official Listof the Financial Services Authority and commencement of unconditional dealings("Admission") is expected to take place at 8.00am BST on 18 May 2007. Stephen Lansdown, Chairman and co-founder of Hargreaves Lansdown, said: "We have been very pleased with the response to the Offer and are delighted toannounce the pricing of the IPO and to welcome new investors in HargreavesLansdown. We look forward to Hargreaves Lansdown being a publicly quotedcompany and to continuing to take advantage of the growth opportunitiesavailable to us." Summary of the Offer Offer Price 160 penceNumber of Institutional Offer Shares 79,086,775Number of Qualifying Offer Shares 39,492,950Total number of Offer Shares 118,579,725Number of Ordinary Shares in issue 474,318,625Gross proceeds of the Offer £190 millionMarket capitalisation of the Company at the Offer Price £759 million • The Company's shareholders before Admission, comprising its founders,Peter Hargreaves (Chief Executive) and Stephen Lansdown (Chairman), certaincurrent and former employees of the Company and connected persons, together withthe Company's employee benefit trust, will together retain a shareholding ofapproximately 75% in the Company following Admission. Peter Hargreaves andStephen Lansdown will together own approximately 60% of the Company followingAdmission. • The executive directors and senior management team have each committedto hold their remaining shares for up to four years following Admission (eachperson will be able to sell 25% of his post-Admission shareholding on or aftereach announcement of the Company's annual results for the years ended 30 June2008, 2009, 2010 and 2011). • There is no over-allotment option in connection with the Offer. • Citi has been appointed as sponsor to the Company and as sole globalco-ordinator and sole bookrunner in relation to the Offer. Numis has beenappointed as co-lead manager. Lexicon Partners has been appointed as financialadviser to the Company. Enquiries: Hargreaves Lansdown Plc +44 (0)117 988 9967 Stephen Lansdown, Chairman Peter Hargreaves, Chief Executive Citi +44 (0)20 7986 4000 Andrew Thompson Jolyon Luke John Sandhu Financial Dynamics +44 (0)20 7269 7200 Robert Bailhache Nick Henderson About Hargreaves Lansdown • Hargreaves Lansdown is a leading provider of investment managementproducts and services to private investors in the UK. • Founded in 1981 by Peter Hargreaves and Stephen Lansdown, HargreavesLansdown has established a reputation for providing high quality client serviceand value-for-money products to private investors. The Company has over 350,000active clients. • The Group's flagship service, Vantage, is a direct-to-private investorfund supermarket and wrap platform. The Vantage wrap platform offers clientsthe administrative convenience of being able to hold and manage theirinvestments, including unit trusts, OEICs, equities, bonds, investment trustsand cash, irrespective of the tax vehicle, in one place with consolidatedvaluation reports, a single dealing service and instant online access. Inaddition, the Group aims to deliver highly competitive pricing, providing morethan £75 million in fund discounts and rebates to clients in the 2006 calendaryear. • As at 31 March 2007, Vantage administered approximately £7.4 billion ofassets directly on behalf of private investors. By this measure, the directorsof Hargreaves Lansdown believe that Vantage is the largest direct fundsupermarket and wrap platform for the private investor in the UK. • Hargreaves Lansdown also manages £1.1 billion of funds through PMS, theGroup's discretionary portfolio management service, and Hargreaves Lansdown'sown range of multi-manager funds, of which some £400 million is held withinVantage. • In total, Hargreaves Lansdown has approximately £8.3 billion of assetsunder administration on behalf of private investors. • The Group also provides independent financial advisory and stockbrokingservices to private investors and advisory services to companies in respect ofgroup pension schemes. • Hargreaves Lansdown has an established record of delivering strongfinancial performance: - In its most recent financial year, ended 30 June 2006, the Grouprecorded a 46% increase in turnover to £73.5 million and an 85% increase inunderlying group operating profit (excluding exceptional, non-recurringadministrative expenses) to £24.3 million. - In the six months to 31 December 2006, the Group recorded a 35%increase in turnover to £43.3 million and a 58% increase in underlying groupoperating profit to £17.2 million. - Overall, the Group has achieved compound annual growth in revenues of20% over the last decade and 29% over the last three years. • The Group is based in Bristol and had 655 employees as at 31 March2007. IMPORTANT INFORMATION The contents of this announcement, which have been prepared by and are the soleresponsibility of the Company, have been approved by Citigroup Global MarketsLimited solely for the purposes of section 21(2)(b) of the Financial Servicesand Markets Act 2000. Each of Citigroup Global Markets Limited, Citigroup Global Markets U.K. EquityLimited (together, "Citi"), Numis Securities Limited ("Numis") and LexiconPartners Limited ("Lexicon Partners"), which are authorised and regulated in theUnited Kingdom by the Financial Services Authority ("FSA"), is acting for theCompany and no one else in connection with the Offer and will not be responsibleto anyone other than the Company for providing the protections afforded to theirrespective customers or for providing advice in relation to the Offer, thecontents of this announcement or any other matter referred to herein. The information contained in this announcement is for background purposes onlyand does not purport to be full or complete. No reliance may be placed for anypurpose on the information contained in this announcement or its accuracy orcompleteness. This announcement does not constitute or form part of any offer to issue orsell, or any solicitation of any offer to subscribe or purchase, any investmentsnor shall it (or the fact of its distribution) form the basis of, or be reliedon in connection with, any contract therefor. The contents of this announcement include statements that are, or may be deemedto be, "forward-looking statements". These forward-looking statements can beidentified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will" or "should". By their nature, forward-looking statements involve risks anduncertainties and readers are cautioned that any such forward-looking statementsare not guarantees of future performance. The Company's actual results andperformance may differ materially from the impression created by theforward-looking statements. The Company undertakes no obligation to publiclyupdate or revise forward-looking statements, except as may be required byapplicable law and regulation (including the Prospectus Rules and the ListingRules of the FSA). Nothing in this announcement is intended as, or should beconstrued as, a profit forecast. Acquiring investments to which this announcement relates may expose an investorto a risk of losing all of the amount invested. Persons considering investingin such investments should consult an authorised person specialising in advisingon such investments. This announcement does not constitute a recommendationconcerning the Offer. The value of shares can go down as well as up. Pastperformance is not a guide to future performance. Potential investors shouldconsult a professional advisor as to the suitability of the Offer for the personconcerned. The Offer will only be made available to certain clients and employees of theGroup in the UK and to institutional investors in the UK and elsewhere outsidethe US in reliance on Regulation S under the US Securities Act of 1933. The information contained herein is not for publication, distribution or releasein or into, directly or indirectly, the United States of America. Thesematerials do not contain or constitute an offer of securities for sale in theUnited States. The securities referred to herein have not been and will not beregistered under the US Securities Act of 1933, as amended, and may not beoffered or sold in the United States absent registration under that Act or anavailable exemption from it. The Company does not intend to register thesecurities or conduct a public offering in the United States. The Company willnot be registered under the US Investment Company Act of 1940, as amended, andinvestors will not be entitled to the benefits of that Act. Securities in the Company have not been and will not be registered under theapplicable securities laws of Australia, Canada or Japan and, subject to certainexceptions, may not be offered or sold in Australia, Canada or Japan. The Offer and the distribution of this announcement in certain jurisdictions maybe restricted by law and persons into whose possession any document or otherinformation referred to herein comes should inform themselves about and observeany such restriction. Any failure to comply with these restrictions mayconstitute a violation of the securities laws of any such jurisdiction. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
Hargreaves Lansdown