DLA leads Cavanagh to AIM success

DLA has snagged Cavanagh Group as a client and advised it on a successful AIM flotation – one of the few flotations not to be plagued by current market conditions.
The DLA team was led by senior associate Tracey Renshaw. She said: “It was a pleasure to get a float away in this market and not have to tell the clients they’d have to wait.”
Cavanagh Group, a firm of independent financial advisers, was admitted to AIM in mid-October. The placing price was £1.50 per share, giving Cavanagh a market capitalisation of £15m.
Non-executive chairman John Campbell said: “We’re delighted with the positive response that the proposal to float Cavanagh has received from investors, particularly in such a difficult financial market.”
Nominated adviser and broker on the flotation was Brewin Dolphin Securities, advised by Pinsent Curtis Biddle corporate partner Michael Robinson in Leeds.
DLA prised the job out of the hands of Horsham-based firm Paul Davidson & Taylor, Cavanagh Group’s usual law firm. Paul Davidson retained an involvement on the deal, advising the existing shareholders of the group.
DLA’s involvement was sparked by the recommendation of Bankhall, a network of independent financial advisers specialising in compliance services. Bankhall became a client of the firm in May 2000, when it was bought by Lynx Group, a longtime client of DLA’s transaction division head Andrew Darwin.
Despite its national corporate practice, DLA has not been particularly visible on flotations on either AIM or the official list, according to The Lawyer’s IPO (initial public offering) Survey 2000. However, according to Corporate Money, in the past year it has handled no fewer than 19 flotations, of which 13 have been on AIM. One of those floats was Lighthouse Group – another firm of financial advisers.