Chartered accounting firm Kelly + Partners will meet small cap fund managers next month as it works towards an initial public offering and sharemarket listing on the ASX-boards.
Investor sources told Street Talk that stockbroker Morgans was helping Kelly + Partners with structuring and marketing aspects of the float, and would introduce the company to selected institutional clients soon after reporting season.
Kelly + Partners is a 32-partner firm with 12 offices, 184 professionals and $36 million in accounting and advisory fees last financial year.
It is expected to seek about a $50 million market valuation should it push ahead with a float, investor sources said.
It is understood Kelly + Partners' existing owners are scheduled to vote on part of the plan at an extraordinary general meeting this week. The shareholders must approve plans to transition from a private company to an unlisted public company, before ramping up preparations for a float.
Founding partner Brett Kelly is the largest shareholder and would be expected to retain at least 50 per cent stake on listing.
Kelly has already attracted some institutional money on to the shareholder register, with fund manager Ellerston Capital a seed investor.
Fund managers are expected to compare Kelly + Partners to high growth listed law firms including IPH, which trades at 17.5-times forecast profit.
Kelly + Partners' listing plans come only months after the firm acquired its 12th office and first in the Sydney CBD.
Kelly + Partners merged with the accounting arm of BMF Group, while BMF Group's Barry Mendel became deputy chairman of the new office and BMF director Barry Frank took on the role of managing director.
