International firm DWF has confirmed it will begin trading this week as it becomes the largest legal practice to float in this country.
Shares will be set at 122p when unconditional trading begins on Friday morning, valuing the company at £366m.
The offer will comprise around 61.5m new shares to be issued and 16.6m existing shares sold by shareholders, equating to 26% of the company worth around £95m.
Members of DWF are expected to hold a majority of the shares after admission, subject to lock up arrangements. One-fifth of each individual’s holding will be released from the lock up following announcement of the group’s preliminary financial results for the financial year 30 April 2020, and for the next four financial years following announcement of the group’s preliminary financial results for the financial year 30 April 2021, 10% of each individual’s holding for each period will be released and a further 10% of each individual’s holding for each period will be released subject to individual performance.
Locked up equity can be released or clawed back – the latter happening in the event that certain performance targets are not met.
The group intends to use £19m of the net proceeds to repay a portion of members’ capital contribution to DWF, up to £10m to invest in additional IT systems, and the remainder used for general purposes including working capital and potential future acquisitions.
DWF will become the first main market listed legal business when it goes public on the London stock exchange.
Chief executive Andrew Leaitherland said: ‘DWF and its partner group see this as the start of the next phase of DWF’s evolution and we are very pleased by the support shown by our new investors.
‘We see substantial, long-term opportunity, to build on our strong track record and further develop and grow our complex, managed and connected services capabilities, while attracting and retaining the best talent, investing in technology and carrying out targeted M&A.’
Leaitherland received shares worth £8.7 million. DWF chairman Sir Nigel Knowles got shares worth £3.3 million.