Strong debut for shares in Scots fintech Nucleus

Nucleus Financial Group, the Edinburgh-based fintech business, has hailed an 'important milestone' after its shares began trading on London's Alternative Investment Market for the first time.

Chief executive David Ferguson: 'important milestone'. Picture: Lisa Ferguson
Chief executive David Ferguson: 'important milestone'. Picture: Lisa Ferguson

Shareholders, including a number of financial advisers, employees and directors, are selling £32.1 million worth of shares in the business, which is seen as one of the biggest successes of Scotland’s fast-developing fintech sector.

Shares made their debut at 183p and were changing hands at well over 200p in early trading.

Founder and chief executive David Ferguson said: “This is an important milestone as we continue our work to support and promote the strategic alignment of advisers and their customers.

“It’s great to see so many institutional investors believing in the growth potential of this objective and we look forward to collaborating with our users to further promote transparency and improve customer outcomes.”

No new money is being raised for Nucleus as part of the float but the firm said the move will help it simplify its ownership structure and provide it with ready access to the capital markets to potentially accelerate its growth.

The company, which Ferguson set up with the backing of a number of financial advice firms in 2006, has developed software platforms which enable financial advisers to provide online access to clients for investments across ISAs, pensions and bond accounts.

The group charges fees to advisers based on the value of the assets that they manage. The firm’s assets under administration have grown to more than £14 billion.

Stephen Trombala, corporate finance partner at law firm Shepherd & Wedderburn and lead legal adviser to Nucleus on its listing, said: “Nucleus is a Scottish fintech success story that has seen exceptional growth in recent years, with £14.3bn in assets now under management.

“Its listing on Aim marks a significant milestone for the company, and will provide a firm foundation for its continued growth.

“We look forward to continuing to work with Nucleus as it continues to expand in the rapidly evolving Scottish fintech sector.”