Gateley raises over £30m in stock market launch

National law firm Gateley today became the first UK practice to float on the London Stock Exchange, raising over £30m as it launched.

The firm, which announced its intentions last month, placed 31,589,937 ordinary shares at 95p each with institutional and other investors, including 10% taken up by its clients. The shares issued comprise 30% of Gateley's 105m shares, and the launch values the business at £100m. The remaining 70m shares are held by its partners and institutional investors.

Initial trading saw the shares sell at a premium, changing hands at between 100p and 110p. Trading is on the AIM market, the London Stock Exchange's international market for smaller growing companies.

Of the proceeds, the selling shareholders will take £25m, of which seven partners will share £20m, and the company £5m, which will be used to support the transition from the previous LLP structure and to invest in its growth strategy, both organic growth and acquisitions.

Gateley's board believes the flotation will provide greater opportunities for growth and geographical expansion, including the opportunity to acquire businesses offering complementary professional and other business services. It also believes it will add to Gateley’s recruitment appeal and raise the firm's general profile.

The flotation covers Gateley's practice in England & Wales, which has offices in Birmingham, Leeds, Leicester, London, Manchester and Nottingham, as well as its office in Dubai, but not the separate practice HBJ Gateley in Scotland, where external ownership is not yet permitted.