RSM’s capital markets team has advised on the IPO of legal and professional services firm Knights Group Holdings plc which was admitted to trading on AIM today (29 June 2018)
The IPO raises £50m (£20m for shareholders and £30m for the company) and values the company at approximately £103.5m.
Knights, which employs 430 people at its offices in Cheltenham, Chester, Derby, Newcastle-under-Lyme, Oxford and Wilmslow is one of the UK's top 100 largest law firms by revenue.
On admission, the Group will complete its acquisition of business law firm Turner Parkinson LLP which will add a further office in Manchester and an additional 63 employees.
In 2012, the firm moved from a traditional partnership model to a corporate structure, which the Directors believe has been a key contributor to the Group's recent profitable growth. In the three years to 30 April 2018, the Group has generated compound annual growth in revenue and adjusted operating profit of 31.4 per cent. and 25 per cent respectively.
The admission of Knights marks the 5th law firm to list on AIM and the second so far this year.
This is the second legal IPO that RSM has acted on following the AIM listing of Keystone Law plc in 2017. The team for the Knights transaction was led by Diane Craig, with support from Matt Cowie, John More as well as the Stoke audit team led by Anne Lakin.
Diane Craig, head of RSM's capital markets team said: 'We were delighted to work with Knights on their IPO. Knights has experienced significant growth over the last few years and today's listing will enable the Group to continue its growth both organically and through investment.
'While listing is not the right course of action for all firms, there has recently been an increasing interest among law firms in the benefits of going public. Given the success of recent legal services IPOs, we anticipate that we'll see more firms taking this route in the near future.'