Xafinity has announced its intention to float on the London Stock Exchange on Thursday, with almost £180m expected to be raised by the Initial Purchase Offer (IPO).

The firm has conditionally raised £179.6m from an institutional placing of 129 million ordinary shares (representing approximately 94.4 per cent issued share capital of the company) at an offer price of 139 pence per share – giving it a market cap of £190m.

The offer is expected to raise net proceeds of £46m for the company, which will be used to help repay its existing debts. The £46m, along with funds available under new debt facilities and the company’s existing cash resources, will reduce Xafinity’s debt from £86m to £33m, the company stated.

Following the offer, 45.8 per cent of the ordinary shares will be held in public hands, it added.

Commenting on the IPO, Xafinity co-CEO Paul Cuff said: "The IPO is the logical next step in our strategy, enhancing our public profile and status with existing and potential clients and providing access to the capital markets to aid future growth if required.”

Xafinity offers a range of advisory and compliance services to over 550 pension scheme clients. It reported revenues of £51.8m for the year ending 31 March 2016.

The float is expected to take place at 8am on 16 February 2017, with Deloitte is acting as financial adviser and sponsor of the offer and admission.

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