Gateley will become the first law firm to list on the stock exchange in the UK after it filed its intention to float this morning.

The firm submitted the document to the London Stock Exchange at 7am. 

Gateley has targeted the junior AIM market, instructing capital markets investment bank Cantor Fitzgerald as broker for the listing.

In its intention to float document Gateley said the listing would give the firm "greater opportunities to grow… both organically and by selective acquisition – including lateral hires of individuals or teams".

Gateley also said it could acquire "other legal firms that offer geographical expansion or specialist services" as well as "businesses offering complementary professional and other business services".

Full details of the value of the listing and proportion of the firm floated are to be announced in due course.

81 partners at the firm will sell at least part of their equity in the business and become holders of ordinary shares. All of the partners have signed a five-year lock-in agreement, with will a claw-back provision on both cash and shares from a 'bad leaver' or 'retiree'.

Gateley intends to pay dividends of up to 70% of adjusted profits after tax once it is listed.

Several consultants familiar with listing procedures said the firm will have taken at least six months to produce an intention to float.

"You can't just go to the stock exchange and say we want to list," one law firm consultant said. "There's a lot of work to move from where they are to a listed company."

Former partners who left as recently as last year, however, said they were unaware of the proposed listing before their departure.

"When I was at Gateley the only answer that was given to questions about the float was that there were no plans," said one.

Firms including Irwin Mitchell, Weightmans and Knights have all been previously reported as possibly considering carrying out an initial public offering.

Australian firm Slater & Gordon became the first to float on a public market in 2007, when it joined the Australian stock exchange.

The move to float comes after Gateley acquired an alternative business structure (ABS) licence in 2014, opening the door to external investment.

The firm will convert to a limited company before it can publicly list shares.

Gateley said in the statement that having "no dependence on any individual client" was an advantage, with 30 clients representing around 31% of gross billings.

The firm reported revenue of £54.6m for the 2012-14 financial year, up from £51.4m in 2012-13. Adjusted profit before tax stood at £7.4m (£5.1m in 2013).

At the half-year point in the 2014-15 financial year revenue stood at £26.7m compared to £23.1m at the same time last year.

On listing the firm's board will comprise current senior partner Michael Ward, who will take up the position of chief executive, finance director Neil Smith and operations board chair Peter Davies, who will become chief operating officer.

Former Sportingbet chief executive Nigel Payne will join as non-executive chairman of the board, while former Eversheds partner Michael Seabrook will become a non-executive director along with Joanne Lake, a non-executive director at AIM-quoted wealth management group Mattioli Woods.