Jupiter Fund Management jumped 15% in London trading after raising £220 million ($325 million) in an initial public offering.
Jupiter surged 25 pence to £1.90, giving the money manager a market value of about £870 million. The London-based firm sold 133.5 million new shares at 165 pence apiece, it said in a statement Wednesday. Jupiter’s owners sold 20.3 million shares for £33.5 million.
The money manager pressed ahead with the offering after at least 33 companies shelved IPOs due to stock market volatility spurred by the European debt crisis. Jupiter had narrowed its offering range to £1.60 to £1.70, from £1.50 to £2.10 previously.
The sale price of £1.65 values Jupiter around 11.2 times its estimated earnings for 2010, according to Execution Nobel Ltd. analysts Nitin Arora and Sri Karthik Velamakanni. That’s cheaper than Henderson Group’s ratio of 13.3 and Schroders’ valuation at 16 times estimated earnings, while Gartmore Group has a ratio of 7.9, the analysts said.