BlackRock takes £39m stake in Jupiter

BlackRock has backed the Jupiter IPO with a 5.1% stake.  

The asset manager has bought a total of 23,500,000 shares in Jupiter, representing 5.13% of its share capital.  

The offer price for the Jupiter float has been set at 165p giving the firm a market capitalisation of around £755 million, and BlackRock a stake worth £38.7 million.  

Fund manager Anthony Nutt's 5.01% is worth some £38 million, while Philip Gibbs sees his 3.51% interest valued at £26.4 million by the market.

Jupiter, led by chief executive Edward Bonham Carter (pictured) who owns a 3.5% stake in the business, had hoped to sell the shares for significantly more after setting an initial price range of between 150p and 210p, which would have given the asset manager a valuation of up to £868 million.

Although it may be disappointed with the price, Jupiter can take comfort from the fact the offer was heavily oversubscribed and that a number of blue chip institutions and retail institutions bought into the IPO in the difficult market conditions.

Conditional dealings commenced today and the firm moved quickly on to a premium in this grey market with shares trading at around the 176p level at 9am. Unconditional dealing in the stock is scheduled for 21 June.

Bonham Carter was pleased with the result: 'The success of the Offer is a tremendous achievement for Jupiter, particularly considering the ongoing volatility in global stock markets.

'The market for IPOs has been extremely difficult during this time and we are one of the few companies in Europe to have been able to proceed with a listing. I would like to take this opportunity to welcome our new shareholders as we embark on the next stage of the Company’s development.'

Following the float Jupiter's directors, employees and persons connected with them will hold approximately 41% of the company's ordinary shares most of which are subject to various lock-in and vesting arrangements. The firm's private equity backer, TA Funds, will hold around 22.3% of the capital.

The firm will use the proceeds from the IPO to help reduce its debt position.