Listing to value broker Collins Stewart at £326m

Collins Stewart, the niche UK stockbroker, will be valued at £326m when it is listed on the London Stock Exchange, more than double the amount paid by management to buy out the firm just six months ago.

Collins Stewart, the niche UK stockbroker, will be valued at £326m when it is listed on the London Stock Exchange, more than double the amount paid by management to buy out the firm just six months ago.

The company will raise £70m placing shares with institutions at 316p each, valuing the company at £204m more than the £122m paid when management bought it from Singer & Friedlander in May. Collins Stewart was expected to be valued at about £250m when listing. As part of the placing, institutions that helped fund the MBO will sell £33.9m of the company's shares, which begin trading on 24 October. The funds raised will be used to pay back about £90m of debt assumed at the time of the buyout and to develop QUEST, an investment software system developed in-house.

Collins Stewart does not have a retail business, except in the Channel Islands. It works for financial institutions and companies on areas such as small companies, preference shares and investment trusts. The company made a pre-tax profit of £17.8m in the six months to 30 June .