Keystone Law has become the third law firm to float on the open market.

Joining the AIM market of the London Stock Exchange, the firm was valued with a market cap of £50 million, following an oversubscribed £15 million fundraising.

High demand saw share value rise by over 20% from 160p to 196p, in the first few hours of trading.

The net proceeds of the placing will be used, primarily, to redeem the outstanding amount of the loan notes held by certain of Keystone’s existing shareholders.

The firm intends to use the rest of the capital in order to support its growth strategy which will, in the short term, focus on organic growth.

Meanwhile Keystone hopes to lend further credibility to its client and lawyer offering.

Managing partner of Keystone Law IOM, Geoff Kermeen thinks that the flotation will offer a number of benefits to the IOM firm in particular and said:

‘It’s an exciting time for Keystone Law.

‘The success of the flotation will increase brand recognition and lend further credibility to our business offering for clients and lawyers, as well as provide a strong platform through which to facilitate growth opportunities – not only for the wider group but, importantly, for the Isle of Man firm and in turn the jurisdiction as a whole.’

Keystone founder James Knight, who becomes chief executive of the listed company, said: ‘The entire team has worked hard to establish our position as one of the leading UK mid-market challenger law firms.

‘Our decision to list on the London Stock Exchange will provide us with the most resilient and stable platform to support our ambitious growth plans long into the future.

‘The UK legal services market is the second largest in the world and we believe the Keystone model is well placed to take advantage of this significant opportunity.’

Mr Knight has family connections with the Isle of Man and visited the island with other directors when Keystone Law’s Isle of Man division was launched in 2016. The firm is based at the Old Courthouse, Athol Street, Douglas.

Keystone Law Isle of Man has also been selected as a finalist by the Legal 500 Awards 2018, for Offshore Firm of the Year.

The nomination for the Isle of Man team places them amongst an elite group of just six offshore firms which includes the likes of Carey Olsen and Bedell Cristin.

It is the only Isle of Man law firm to have been shortlisted for the prestigious award.

The Legal 500 UK Awards are unique to the legal industry and recognise each element of the profession equally, representing the very best law firms, chambers, silks, in-house lawyers, business leaders and general counsel operating within the UK market.

The shortlist is based on those that have impressed their research team over the past 12 months for contributions to a particular business sector or practice area.

Meanwhile, as part of the Legal 500 directory rankings this year, the Isle of Man team received exceptional reviews from clients, and was described as being ‘equal to or better than the long-established Isle of Man law firms’, ‘highly responsive’ and providing ‘an excellent service – it is hungry and energetic when other firms are asleep’.

It was recognised for advice in Dispute Resolution, Employment, Insurance & Pensions, Corporate & Commercial and Banking & Finance and almost every lawyer in the team was individually recognised for their delivery of legal advice.

Director Gillian Christian and colleagues Ben Hughes and Charles Coleman also gained the coveted Elite ranking of Leading Individuals.

Geoff, who was also ranked in the directory, said: ‘To be nominated for this award, not only as the only Isle of Man practice to be listed but also in a category including so many excellent international law firms throughout the Offshore world, is a great achievement for our team at such an early stage and a fantastic acknowledgement of the expertise of the lawyers we have attracted to Keystone and the standard of client service they provide.’

The awards will take place in February 2018 at London’s Royal Exchange.