Interactive Investor (II), the online retail investment platform, is lining up bankers as it mulls an Initial Public Offering that could value it at £2bn. Britain’s second largest DIY investment fund this week invited investment banks to pitch for a role on a London floatation, a source told Sky News. Unlike many investment funds, II charges its customers a flat monthly fee rather than taking a percentage from customers. The strategy has paid off dividends as the platform now boasts 400,000 customers and is in charge of £55bn of assets.
In 2020 II CEO Richard Wilson told press that a stock market float for Interactive Investor was a possibility after the company enjoyed record trade volume during the covid-19 pandemic.
The company has only grown this year, seeing a 19 per cent increase in revenue during the first half of 2021 which stood at £76.1m and welcoming more than 30,000 new customers. An IPO could see the firm valued in a range of £1.5bn and £2bn.
Hargreaves Lansdown, the largest London listed retail investment firm, has seen its share price surge by 249 per cent over the past ten years with the FTSE-100 listed company now in charge of £135.5bn of assets for 1.64m clients.
AJ Bell, another major player in the DIY investment market, floated its shares in December 2018 and has seen share prices almost double from 220GBX to 430GBX today.
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