Platform and SIPP firm AJ Bell has confirmed plans for a float on the London Stock Exchange next month with the company valued at up to £500m.

Major shareholders Invesco Perpetual and chief executive Andy Bell will have an opportunity to sell down their stakes in the business while broadening the firm’s shareholder base.

Invesco currently has a 44 per cent stake which it is expected to sell down to around 25 per cent.

Mr Bell holds 28 per cent of the business and is expected to retain around a quarter.

AJ Bell says the float would enhance its brand, extend its shareholder group, assist in recruitment and incentivisation and help with its growth strategy.

UK customers can apply for shares via the company investment platform, with a minimum tranche of £1,000.

Following admission AJ Bell plans a free float of at least 25 per cent of the company’s stock.

The directors and employees of AJ Bell who are selling their shares will be subject to a one-year lock-in following the date of admission with regard to 100 per cent of their shareholding at admission and a further year lock-in regarding 50 per cent of their shareholding

The company confirmed Numis will act as sponsor, financial adviser, broker and sole bookrunner.

The price range of the float will be released in AJ Bell’s prospectus with the final offer price determined in the run up to the listing.

AJ Bell's revenue was boosted by close to 20 per cent in the year to September, with revenue growing 19% to £89.7m and pre-tax profit rising 31% to £28.4m.

Chief executive Andy Bell said: “Our intention to float the business on the London Stock Exchange reflects both our historic achievements and our belief in how much more we can achieve.

“A listing offers us further reputational and commercial benefits that will support our growth plans.”