An AMV BBDO advertising supplement: Investors scramble to snap up shares as AMV goes public

29 November, 1985

29 November, 1985

Abbott Mead Vickers became a public company last Friday (22 November),

offering 3.66 million shares at 180p each. The sale of 29 per cent of

the equity raised pounds 6.6 million and was oversubscribed 30 times by

eager investors, despite carrying an above-sector average price-earnings

ratio of 18.5. The deal gave AMV a market capitalisation of pounds 22.4


The flotation - in the same week as Laura Ashley - was accompanied by a

giant poster on the Cromwell Road headlined: ’On no account ignore

Abbott Mead Vickers.’ Each of the principals, as well as eight senior

directors, signed long-term contracts immediately before flotation,

locking them in for a further five years.

The float marked the culmination of an 18-month process, from spring

1984 when the partners first agreed in principle to go public. A staff

share option scheme has also been introduced. On November 18, three days

before the offer closed, AMV won the pounds 2.5 million Sealink


Twelve years later, on its 20th birthday, the agency’s market

capitalisation had risen by a factor of more than ten.

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