UPDATE 1-LPL to raise up to $515 mln in IPO | Reuters | Advisor Area

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Tue,Wed Nov 3, 2010 6:25pm EDT

* LPL Investment Holdings to register 17.2 mln shares

* LPL proposed maximum price is $30 a share

* Shareholders to sell 15.6 mln shares

By Joseph A. Giannone

NEW YORK, Nov 3 (Reuters) – LPL Investment Holdings, parent of independent brokerage network LPL Financial, on Wednesday said it intends to raise as much as $515 million in its initial public offering.

In an amended IPO proxy, LPL said it hoped to price its shares in the range of $27 to $30 each. Selling stockholders are offering 15.6 million shares, with 107.1 million shares outstanding after the sale.

Underwriters have the option to purchase an additional 1.6 million shares to meet any strong market demand. LPL will not receive any proceeds from offering.

LPL provides a platform of technology, brokerage and investment advisory services to more than 12,000 independent financial advisers across the United States. The Boston-based company, controlled by private equity firms TPG Capital and Hellman & Friedman, also sells customized clearing and other support services to another 4,000 advisers.

Combined, the number of LPL-affiliated advisers rivals that of Merrill Lynch.

LPL’s business has grown rapidly in the past five years, fueled by the waves of brokers leaving big firms to form independent practices. Firms like LPL have made it easier for brokers to run small shops and still offer big-firm services.

Total advisers on the main platform more than tripled to 12,000 over the past ten years, a compounded annual growth rate of 13 percent. But the pace of expansion stalled in the year ended Sept. 30, when its broker ranks fell, and showed little growth in 2009.

LPL attributed the declines to its consolidation of previously acquired broker-dealer units.

The offering was first registered in June.

(Reporting by Joseph A. Giannone; Editing by Bernard Orr)

via UPDATE 1-LPL to raise up to $515 mln in IPO | Reuters.