One of the biggest UK headquartered brokerages CMC Markets is looking to raise close to £231 million ($328 million) at the mid point of the price range of the Initial Public Offering (IPO) which the company announced earlier this month.
CMC Markets is looking for between 235 pence to 275 pence per ordinary share, with about 90.4 million shares on offer. At the time of admission to the London Stock Exchange this will be about 31 per cent of the ordinary shares of the UK brokerage.
our performance has been especially positive since the start of the calendar year 2016 through the recent market volatility
The base transaction size of £231 million also includes a primary capital raise by CMC Markets of approximately £15 million ($21.3 million). The IPO will also have an over-allotment option of up to 15 per cent of the base transaction size. The company has been preparing for the move since early December, when it appointed a set of new non-executive directors to its board.
Before the official release of the prospectus to the public, CMC Markets has announced that the proceeds from the primary capital raise will be used to meet the costs of the IPO and devise staff incentive plans for its key executives
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The CMC Markets IPO will include an offer to institutional investors in certain qualifying jurisdictions, alongside with a special offer to clients meeting a set of criteria outlined in the broker’s announcement on the 3rd of January 2016.
Clients who are willing to participate in the share offering are to submit their applications by 22:00 GMT on Wednesday, the 3rd February 2016. The latest date for private investors is the 3rd of February 2016, while institutional investors have to apply by the 4th of February 2016.
The final pricing of the CMC Markets IPO is expected to be publicized on or around the 5th of February 2016 with trading expected to commence on the 10th of February 2016.
The founder and CEO of the brokerage, Peter Cruddas, said in the announcement: “The IPO is an important step for the business, and I look forward to meeting prospective investors over the coming days and weeks. CMC is in a strong position and is enjoying another good financial year, as stated in our first half results.”
“Our performance since then has been positive, and especially so since the start of the calendar year 2016 and through the recent market volatility,” he explained.
The news comes after another bout of volatility is hitting the European markets lower this morning. Shanghai closed down 5 per cent, while oil has continued tanking signaling increased market worries are still ongoing despite a pause last week, after the European Central Bank (ECB) committed to announcing more stimulus measures in March.