Bell Financial Group Makes Stellar Debut

Bell Financial Group (BFG) got off to a firm start on its first day of listing, opening at a 25% premium to its initial public offer (IPO).

The broking and financial advisory firm debuted at $2.49, up from its listing price of $2.00.

The IPO raised $86 million, with the company to retain $27 million.

The firm intends to use the new funds to grow its core equity advisory business and extend its product offerings, which include margin lending and cash management.

Global investment bank UBS holds an 18.6% stake in the company and will allow the Bell companies access to research and capital markets resources.

In its prospectus, Bell said it was expecting a pro-forma net profit of $32.5 million for the 2007 financial year.

The company also said that it intends to maintain a dividend payout ratio of 60% of net profit, with the first dividend expected to be paid for the six months ended June 30.

Although Bell didn't continue trading at the intraday high, it still closed up 37 cents higher at $2.37.

About Glenn Dyer

Glenn Dyer has been a finance journalist and TV producer for more than 40 years. He has worked at Maxwell Newton Publications, Queensland Newspapers, AAP, The Australian Financial Review, The Nine Network and Crikey.

View more articles by Glenn Dyer →