The founders of Arden Partners are to receive #2.8 million in shares and cash each when the Birmingham stockbrokers announces its intention to float on AIM today.
Around #3 million of the #15 million raised will be ploughed into expanding the firm while the remainder will be distributed to the 12 partners who set up the company four years ago.
Arden, which has its head office in Edgbaston, was set up by a team of analysts and brokers from Old Mutual Securities in 2004.
The founders had originally worked at Albert E Sharp in Birmingham before going on to set up Arden, which is expected to have a market capitalisation of around #35 million to #40 million after the float.
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.
Chief executive Tony Bartlett said around #12 million would be returned to the partners and #3 million 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 some 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."
Each of the founders will receive seven per cent of the issued shares, but will be allowed only to sell half of their allocation.
Original chairman Graham Whately is to step down from his post, although he will remain with Arden as a non-executive director.
He will be replaced by Sir David Rowe-Ham, a former chairman of Brewin Dolphin and Lord Mayor of London.
A share price or the exact number of shares to be issued has yet to be determined, although market-ing is expected to begin today, followed by prospectuses.
Despite the current downturn in the market, Mr Bartlett was unperturbed about the float which is due to take place in mid-July.
"We know market conditions are not very good at the moment, but we are taking the long-term approach," he said.
Last year Arden, whose clients include Aston Villa Foot-ball Club and Claimar Care Homes, achieved profits before tax of #3 million on turnover of #11 million.
It is on course to beat that performance this year with pre-tax profits of #2.6 million in the six months to the end of April.
Mr Bartlett said the company had no particular acquisitions in mind but did want to increase its head count particularly on the research side of the business. He added: "We are going to be in the market for more analysts, although how many it is difficult to say at the moment. If somebody is really good who is available we would be looking to take them on anyway.
"The float will help us attract more staff because then we will be able to offer them share options in the future.
The firm's Birmingham offices would be retained as well as further investment in computer infrastructure planned.
"We have got to grow. We have grown very quickly and we believe we can grow even further," said Mr Bartlett.
"We have got some excellent clients - Hill & Smith, Castings, Claimar and Aston Villa.
We want to do more for these clients as well as adding more. This float will take us to the next stage in our development.
"It will give us an increased profile and gives us the ability to raise money for any deals we plan in the future or any future links by offering equity as part of the package."