Partners at Birmingham stockbroker Arden are to share in a £12.4 million payout after the company completed a institutional placing of its shares yesterday.

The Edgbaston firm, which grew out of Albert E Sharp and Old Mutual, has been valued at £40 million after raising £3 million before expenses. It placed 1,851,852 ordinary shares at 162p each.

In addition, 7,667,056 ordinary shares have been placed on behalf of selling shareholders, representing a further £12.4 million, which will be s hared between the 12 partners.

The company said dealings are expected to commence in the ordinary shares on the AIM Market of the London Stock Exchange next Wednesday.

Chief executive Tony Bartlett said: "It's gone very well. There are very difficult market conditions, but the take up has been very good and we are very pleased.

"Everything is now ready for next week. The costing of the shares met our expectations and we have raised the money we wanted to.

"Arden has achieved an important milestone towards the next phase of our expansion. We are delighted to have successfully completed this float and fund-raising. The placing attracted strong demand from UK institutional investors.

"Joining AIM provides a strong platform for growth and we look forward to delivering value to shareholders in the coming years."

The business, which commenced trading in November 2002, acts as advisor and broker to companies with a combined market capit alisation of around £3.5 billion.

The group raised or placed £170 million for its clients in the year to October 2005 and has raised over £100 million for them so far this year.

Arden, which employs 42 people, also has offices in the City and Bristol, with all staff expected to share in payouts of up to £1.4 million.

Each of the 12 original partners will receive a seven per cent stake, valued at £2.8 million, although they will be allowed to cash in only half of it. Around 60 per cent of the company will remain in the hands of staff, which includes the partners.

Mr Bartlett said £3 million would be invested in the business. He said: "We have been planning this for some time. We have been growing very fast. Now we want to recruit more people, spend a bit of money on infrastructure and increase our market making.

"The guys are also selling some stock; the founders have been involved for four years and they want to take something out of it."