Jupiter cuts float price to bolster sale
JUPITER Investment Management yesterday cut the value of its proposed flotation in a move designed to ensure healthy investor demand for the shares.
The asset manager, run by actress Helena Bonham- Carter’s brother Edward, is looking to sell shares between 150p to 210p each, a valuation of £718million to £868million.
Two weeks ago the company was aiming for a value of £810million to £1billion, but the downturn in markets since then forced a rethink. “It’s being priced to go,” said an analyst.
Even at the reduced price, Bonham-Carter and leading fund manager Tony Nutt will be worth tens of millions. They currently own 6 per cent and 9 per cent respectively, although these will be diluted. Bonham-Carter and Nutt are locked in for three years on those shares they are not selling as part of the sale.
The company is hoping to raise £220million from the float, with management and staff looking to sell between £43.5million and £79.2million.
Apparently Jupiter decided to press ahead rather than postpone the float to attract and retain key staff using share-based bonuses.
At the mid-price of 180p a share, Jupiter is worth £793million, or nine times projected earnings for next year. Rival fund managers Schroders and Henderson trade at around 11 times earnings.