Jupiter hopes for £220m from its IPO to pay off debts

Jupiter Asset Management, the UK's best known fund manager is planning an IPO on Monday week, which it hopes will stabilise and reestablish the company as a FTSE 250 firm worth £718 million.

The price range of the initial public offering is 150p-210p.

The 122.4 million new shares on offer could raise up to £257 million if all sold at maximum price.

In addition, existing shareholders could raise a further amount by selling, bringing a total payout to the company and its shareholders and staff a £500m windfall.

The company, which has under management £19.5 million of assets, plans to use the sales from new shares to halve its debts paying private equity firm TA Associates who it owes £204 million.

Jupiter Chief Executive, Edward Bonham Carter, also hopes that the sale of shares through an IPO will make the company more competitive, as all employees particularly senior management will be under performance related measures.

The firm's leading fund managers will only be able to sell off up to 20 pct of their shares initially, giving them a potential windfall up to £80 million whilst the rest of their shares will remain locked in for much of the following three years.

The firm hopes it will also attract new talent through this as much of their salary can be based on the companies shares.

Anthony Nutt, equity income manager stands to earn up to £38.4 million if his stake value is kept at mid price of 180p.

Edward Bonham Carter, who owns a 3.34 pct stake would be entitled to a bonus of £26.5 million if he decides to sell, and Philip Gibbs, the firms financial wizard, £27.1 million.

Other major stakeholders include the chief investment officer, John Chatfeild-Roberts whose stake could be worth £14.8 million.

The prospectus also notes the company manages funds for mostly private investors and retail investors something which it hopes will help the floatation fare better than Gartmore whose narrower range of funds are blamed for their current share price trading at almost half its original value - the shares currently trade at 120.40p on the FTSE 250 after floating for 220p.