Ex-Archer aides in £18m YouGov float

ONLINE polling company YouGov is to float on the stock market with a value of £18m. The company, set up just five years ago, is to list on the Alternative Investment Market (Aim) next Monday. The placing of one third of the company's shares with institutions at 135p each will give the company a market value of £18m, raising £3m for the business.

Joint founders Nadhim Zahawi and Stephan Shakespeare are former aides to the disgraced Tory peer Jeffrey Archer and will each cash in shares worth some £1.2m from their individual £5.7m holdings in the company.

YouGov's chairman, the political journalist and commentator Peter Kellner, will cash in shares worth £183,313 from his existing holdings, which are worth £854,000. Another leading journalist, the Today programme presenter John Humphrys, could make as much as £270,000 from the float if he sells shares that he was given in return for writing a column for the company's website.

Zahawi said the company planned to expand its internet market research techniques and would also consider 'selective acquisition opportunities'. YouGov already conducts a wide range of of research surveys for private companies, including several in the financial services industry.

Zahawi expressed confidence about the company's development after the flotation. He said: 'We have a strong business model and, using online research methodologies, we believe that we are well positioned to benefit from the growing trend towards this type of research. We now look forward to creating long-term value for all of our shareholders.'

The accuracy of YouGov's polling techniques are likely to be vigorously tested on 5 May. Throughout the General Election campaign the company has consistently found the gap between Labour and the Conservatives to be much narrower than other pollsters.

In 2001 its prediction for the outcome of the General Election proved to be more accurate than rivals, most of whom had pointed to a bigger majority than Labour actually achieved.