Partners and staff at listed law firm pioneer Gateley are cashing in on the firm’s success by selling millions of pounds in shares.

The AIM-listed commercial firm, headquartered in Birmingham, announced this morning that directors and staff intend to sell 4.75m shares at not less than £2, raising at least £9.5m. The shares represent 4.1% of the issued share capital.

In a statement to the market, Gateley said the placing is being undertaken ‘in order to satisfy market demand and broaden the institutional investor base of the company’.

When the company floated in 2015, the former partners held 70% of the shares.  They voluntarily entered into five-year lock-in agreements which permitted them to dispose of up to 10%  of their interest in any 12-month period after the first anniversary of admission.

On 17 October last year Gateley entered into a new five-year lock-in which places restrictions on the sale of shares on the same terms as the initial agreement.  The new agreement will become effective on 8 June 2020 when the initial agreement expires.

Shares in Gateley Holdings plc dipped 3% in morning trading to 206p.