Full-service outfit does a Gateley
Gordon Dadds has become only the second law firm to take a punt on the London Stock Exchange (LSE).
The full-service outfit confirmed on Friday that it had offered 14.2 million shares on the Alternative Investment Market (AIM) at 140p each.
In a public offering that reportedly raised a whopping £20 million, Gordon Dadds’ top brass said it would use the cash to help fund future growth, acquisitions and the repayment of debt. On the opening day of trading the firm’s share price fluctuated between 145p and 147p.
Legal Cheek reported last month that the flotation has come about through an £18.75 million “reverse takeover” deal with AIM-listed investing company Work Group.
Commenting on its inaugural share offering, Gordon Dadds’ chief executive, Adrian Biles, said:
The UK legal services sector is highly fragmented and Gordon Dadds’ proven consolidator model is uniquely positioned to take advantage of this significant market opportunity. We now have the necessary capital to support the group’s next stage of development which will enhance the group’s profile with clients and potential target firm.
According to the latest financials, Gordon Dadds posted a revenue of £25 million last year, an increase of 24% on the year before (£20.2 million). It has offices in London, Cardiff and Bristol, and offers around six training contracts annually.
However, Gordon Dadds isn’t alone. In 2015, national outfit Gateley floated on the LSE, the first firm to do so, with an opening share price of 95p. At the time, we cheekily suggested that training contract hunters could snap up a few in a bid to stand out from the crowd. One law student at a leading London university said:
I hadn’t even heard of this firm until I read about their listing. But now I’m planning to buy a few shares in them and then use that information on my application form when I apply to them. It’s got to be worth a try!
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