The consolidator will sell new ordinary shares in the company at 370p a share with proceeds used to “execute the company’s acquisition pipeline”.
The firm said the “accelarated bookbuild” was open with immediate effect.
AFH has snapped up 16 IFA firms in the last year, spending around £16m.
A company statement read: “The board intends to continue to execute its strategy of making selective acquisitions and increasing AFH’s national footprint, while providing a professional and cost-effective service to its clients.
“The board believes that the company remains well positioned to take advantage of consolidation opportunities in the IFA market and currently has a strong pipeline of potential acquisitions that are under negotiation and in due diligence.
“The company is undertaking the placing to provide it with a strong platform to finance such acquisition opportunities.”
Chartered Financial Planner Alan Hudson, chief executive of AFH, recently spoke about the firm’s business model and corporate strategy in an exclusive interview with Financial Planning Today.
He said: We have consistently achieved double-digit organic growth.
“We buy businesses because we believe our strategy benefits shareholders and clients alike.
“In other sectors with scale comes improved buying power, which generally enables businesses to widen margins, create competitive advantage or a mixture of both.”