Staff are stars as New Star floats

Staff are stars as New Star floats

Forty millionaires will be created today, on paper at least, when the fund management group New Star floats on the stock market, valuing the company at £700m.

As a result of the flotation on Aim, London's junior market, New Star's founder, John Duffield, will add an extra £120m to his wealth. But he will retain his 17% stake in the business he founded five years ago, having made an estimated £200m after his acrimonious departure from the German bank Commerzbank, which bought out his previous venture, Jupiter.

New Star's offer price is thought to have been fixed at 225p, suggesting a market capitalisation of just over £700m.

All of New Star's 270 or so staff are believed to be shareholders and between them own 60% of the company. They are expected to sell off just 5% of their combined holding and will be required to hang on to the remainder of their stock until 2009 under the terms of the share sale.

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The flotation is taking place because the institutions that put their money into New Star five years ago now want a way out. Mr Duffield eventually hopes to list the company on the London Stock Exchange's main market once he has all the financial data required for such a move.

Among the New Star employees expected to become paper millionaires today are the receptionist Zoe Shaw as well as the former financial journalist John Jay.

Mr Duffield is known for making fortunes for his staff. At Jupiter, some 140 staff also made at least a million, including a former secretary, Angela Hudson.

Guardian Unlimited © Guardian Newspapers Limited 2005