London-based commodities broker Marex has filed for an initial public offering (IPO) in New York in a huge blow to the City after a drought of floats this year.
Marex confirmed today it has submitted a filing to the US Securities and Exchange Commission for an IPO in New York next year, meaning one of London’s top private financial services firms will opt to list its shares across the Atlantic.
“The size and price range for the proposed offering have not yet been determined,” the firm said today.
“The initial public offering is expected to commence after the completion of the SEC review process, subject to market and other conditions.”
The targeted valuation is set to be between $2.2bn and $2.8bn, around three to four times more than its previous goal when Marex attempted to list on the London Stock Exchange in 2021, sources familiar with the matter told the Financial Times
Marex’s IPO had been hotly contested after it was forced to shelve its float in London in 2021 due to volatility in the markets.
As a London-headquartered firm, the decision to float across the Atlantic will strike a huge blow to the Square Mile and regulators amid a drop-off in listings this year. The London Stock Exchange and City grandees have been hit by a steady stream of firms heading towards New York, including the chipmaker Arm earlier this year.
Companies have taken aim at a lack of liquidity in the Capital and lacklustre valuations. The reported $2.2bn target price tag in New York will raise fresh questions over the health of London’s capital markets, despite London Stock Exchange Group chief David Schwimmer saying the valuation gap was a “myth” last month.
A record set of results for London-based commodities broker Marex revived the prospect of an initial public offering (IPO) for the firm earlier this year – but bosses then said they may be eyeing New York as the destination.
Marex, one of the world’s largest privately-owned commodities brokers and clearing houses, reported a 53 per cent surge in adjusted pre-tax operating profit to $121.7m (£97.3m) in April, as net revenue jumped 29 per cent to $701m.
The record results come after the firm snapped up ED&F Man Capital Markets last year to boost its metals business and expand in fixed income and equities. The deal saw the firm boost its client funds by 139 per cent to $12bn, with $4.5bn added through the takeover.
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By CityAM
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