AssetMark Financial Holdings IPO: What You Need To Know

A technology provider to wealth management firms is among the companies testing the waters in the public markets this week. 

The IPO Terms

Concord, California-based AssetMark Financial Holdings, Inc. proposes to offer 12.5 million shares in an IPO, with 6.25 million shares offered by the company and the remaining 6.25 million shares by selling shareholders, the company said in an amended prospectus filed with the SEC July 10.

The company expects to price the offering between $19 and $21.

At the midpoint of the price range, the size of the offering is $250 million.

The shares have been approved for listing on the NYSE under the ticker symbol "AMK."

JPMorgan, Goldman Sachs, Credit Suisse and Huatai Securities are the lead underwriters for the offering.

The Company

AssetMark provides wealth management and technology solutions for fee-based independent advisors and their clients, providing an end-to-end experience.

Its platform gives advisers an integrated suite of product and services that are intended to facilitate growth, streamline workflows and provides scale to adviser businesses.

As of March 31, 2019, AssetMark's platform served approximately 137,000 investor households through approximately 7,600 adviser relationships.

The Finances

AssetMark reported revenues of $363.63 million for fiscal year 2018, up 23% year-over-year. Its net income for the year declined from $98.98 million to $37.43 million.

For the first three months of 2019, the company's revenues climbed 5% to $83.06 million but net income fell from $9.79 million to $2.81 million.

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