Edinburgh-based investment platform Nucleus Financial has confirmed plans to float on the stock market this month with a potential valuation of up to £150m. 

Nucleus today revealed its intention to apply for admission of its Ordinary Shares to trading on the AIM market of the London Stock Exchange.

Dealings are expected to commence in late July. 

In an announcement to the Stock Exchange, Nucleus, one of the smaller platform operators, said the time was right for a float as demand for its services was growing.

It said: “The UK Financial Planning and wealth management market is growing due to demographic, lifestyle and regulatory factors, most notably in respect of the increase in ISA allowances and greater pension flexibility. Financial advisers have increasingly come to rely on the efficiencies and capabilities offered by platforms to deliver their proposition.

“Since the end of 2012, AUA in the advised platform market has grown from £123 billion to around £350 billion and is projected to grow to £745 billion by the end of 2021.

Nucleus is growing rapidly and provides wrap platform services to more than 2,200 adviser users working at 800 financial adviser firms. It is responsible for assets under administration of £14.3 billion on behalf of more than 90,000 customers.

Nucleus says it believes that the financial advisers that use the Nucleus wrap are “generally younger and generate greater revenue per adviser than wider market averages.”

David Ferguson, chief executive and founder of Nucleus, said: "We started this business in 2006 to create value through greater strategic alignment of advisers and their clients. Our commitment to this goal drives the development of our award-winning platform and has enabled us to grow from AUA of £100 million in 2007 to more than £14.3 billion today."

"Nucleus has been an exciting journey so far and we expect this admission to AIM to mark an important milestone in the business's maturity and to open up new opportunities for us. We remain committed to keeping adviser / client alignment and transparency at the heart of what we do and to continue developing a market-leading platform and best in class customer service to deliver on our objectives."

The prospect of a float for the adviser-owned platform has been rumoured for the past year and has been reported on Sky News again at the weekend.

Nucleus is seeking to follow rival platform Transact, which floated earlier this year. Another platform, AJ Bell, is also looking to float on the back of a buoyant stock market

and strong investor demand.

Nucleus is one of the smaller platform operators and additional capital may help the growing firm speed up its expansion and compete with bigger rivals.

Wealth manager Sanlam has a significant stake in Nucleus which paid its maiden dividend last year. Nucleus said the dividend was due to five years of increasing revenues and £15m of cash reserves.

• Editor's note, 9.30 am: Story updated extensively to include Nucleus' confirmation on the float and more financial details.