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Marex opens for listing in the United States in the latest blow to the London Stock Exchange

Marex opens for listing in the United States in the latest blow to the London Stock Exchange

Commodity broker Marex is considering listing in New York as it seeks to revive its IPO plans, in the latest sign that the London stock market is losing its luster.

The London-based group canceled an ad in the UK capital in 2021 with a target valuation of between $650m and $800m, but is currently pricing both cities for a share sale which could take place early next year if market conditions are appropriate.

Chief executive Ian Lowitt said in an interview that the likely continuation of strong earnings next year meant that private equity owners of Marex were starting to relaunch exit plans and that these could include a SEO.

“What we see in 2023 creates an option for shareholders. The company could go public,” he said. “It’s something people think about given the performance of the company. .”

Market participants expect the valuation of the broker, controlled since 2010 by JRJ Group, a private equity firm created by two former Lehman Brothers investment bankers, to be between 1.6 and 1.7 billion. dollars, although the advisers have not yet been officially appointed.

In response to additional questions, marex said it was considering the possibility of a listing in London or New York.

The company, which provides trade and derivatives hedging for large commodity producers and consumers, withdrew its listing plans two years ago due to weak market conditions; At the time, a host of newly listed companies, including food delivery group Deliveroo, underperformed.

Marex’s decision to put New York in the running as a listing venue further fuels the debate over the competitiveness of the London market which has been inflamed by several companies – including CHR, the world’s largest building materials group – abandoning or reconsidering the capital. British.

On Wednesday, Holiday Inn owner InterContinental Hotels Group warned that the UK stock market was “not a very attractive placefor listed companies.

The relaunch of Marex’s listing plans came after it posted a record annual profit in 2022, boosting pre-tax profit by more than half to $121.7 million on revenue of $702 million, while that the financial services group benefited from buoyant commodity markets and higher interest rates.

The broker has aggressively expanded its financial products and geographies through several acquisitions over the past few years. These have helped it grow its business in the United States to the same size as in Europe and also expand in the Middle East and the rest of Asia.

Lowitt said he expects earnings to continue to rise next year since those numbers would include ED&F Man Capital Markets and some OTCex businesses, whose acquisitions he completed earlier this year.

“We’ve laid the foundation for a great 2023 and beyond,” he said.

However, 2022 has not been easy for Marex, which is one of eight companies trading in the ring of the London Metal Exchange, as it faced market dysfunction during the trading crisis. nickel in March of last year.

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