AvaTrade Eyes London IPO at £700 Million Valuation

AvaTrade has picked JP Morgan and Jefferies to lead preparations for an IPO which could come in the coming months.

Dublin-based forex brokerage, AvaTrade is aiming to join the rush of high-profile listings in London, Sky News reported on Thursday.

Reports suggested the listing at London stock market might see the Irish online trading platform valued between £500 million and £700 million.

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AvaTrade has picked JP Morgan and Jefferies to lead preparations for its floating, which could come in the coming months. The sources, who requested anonymity to discuss the plans, cautioned that the exact timing and valuation will be subject to market conditions and investor appetite.

AvaTrade, which was founded in 2006 by Emanuel Kronitz and Negev Nosatzki, could initially apply for a listing on the AIM market of the London Stock Exchange (LSE). The AIM is a sub-market of the LSE where smaller companies are traded, and also offer a more flexible regulatory system compared to the main stock exchange.

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AvaTrade Valuation Jumps Six-Fold in 5 Years

AvaTrade’s proposed IPO would see the company joining the ranks of other UK-listed brokers, including CMC Markets, Plus500 and IG Group. In mid-2020, CMC Markets ‎‎(LSE: CMCX) has been inducted into the FTSE 250, an index that measures the largest companies on the London Stock Exchange.

At the upper end of its IPO range, AvaTrade would be worth six times more than the price proposed by Playtech, once controlled by Israeli billionaire Teddy Sagi, in 2015. The gambling software company offered to pay $105 million, but the deal failed after Ireland’s central bank opposed the acquisition.

Such a jump in valuation underscores the growth of its platform. AvaTrade had strong underlying performance in the business throughout the year, which was enhanced by increased market activity in 2020. Bolstered by the coronavirus-induced volatility, the company said in December it had grown a client base of more than 300,000 traders spread across 150 countries.

Headquartered in Ireland, AvaTrade Group is a provider of a full spectrum of trading instruments, including forex, stocks, commodities, cryptocurrencies and indices. The company is licensed by six independent regulators, including BVI Financial Services Commission, Central Bank of Ireland, Japanese Financial Services Authority, Australian Securities and Investments Commission and South Africa Financial Services Board.

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