Pepperstone IPO Chatter Getting Louder with Hiring of Berkshire Capital
Chatter of possible Pepperstone IPO grew as the broker has contracted Berkshire Capital, a New York based investment bank that
Last month it was reported that Australian forex broker, Pepperstone was contemplating an initial public offering (IPO) or sale. The fast growing broker who has grown its monthly forex trading volumes to $70 billion since launching in 2010, had reportedly rejected numerous buyout bids. In addition, following the successful IPO of OzForex, a foreign exchange transfer firm on the Australian Stock Exchange, it proved that there is demand in Australia for financial firms in the capital markets.
Today, chatter of possible IPO grew as the WSJ reported that Pepperstone has contracted Berkshire Capital, a New York-based investment bank that provides services to the Australian market through its local Sydney office. As a specialist in transactions, Berkshire may also have been brought in to help the broker negotiate better terms from its previous bidders. Speaking to Pepperstone CEO, Owen Kerr last month, he told Forex Magnates that, “Pepperstone is not closing the door on other offers that it may receive, and are open to other offers. We are interested in the potential and future.”
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Despite being a healthy year for forex IPOs, as well as public brokers outperforming the market in 2013, the M&A market hasn’t been as kind. Recent deals of GAIN Capital purchasing GFT, as well as Swissquote’s buyout of MIG Bank featured low multiples on their revenues. Therefore, the highest multiples may only be available through tapping the IPO market.
One factor that could limit multiples from Australian brokers is potential regulatory changes in the country. The Australian Securities and Investments Commission (ASIC) published a warning about the risks of forex trading last week. The letter followed the liquidation of GTL Tradeup last month, after client funds were found to be missing from the Australian licensed broker. Using their ASIC licenses, brokers in the country have been successful in courting APAC country customers. Therefore, any restrictions on margin requirements or account funding could lead foreign traders to search elsewhere for their trading needs.
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So why go public? Is there any real advantage to it? I could .see one: adding a layer of transparency to the company itself, which would be good for traders
So why go public? Is there any real advantage to it? I could .see one: adding a layer of transparency to the company itself, which would be good for traders
Jon: because they want to cash out? I suppose the owners wouldnt mind having a few dozen million $s in the bank account. Isn’t that why people ultimately start a business..
Jon: because they want to cash out? I suppose the owners wouldnt mind having a few dozen million $s in the bank account. Isn’t that why people ultimately start a business..
This is nothing but a PR Stunt.
Why would Pepperstone talk about an IPO pre-IPO, this is frowned upon by regulators.
Pepperstone have another agenda here, they are not look for an IPO or Sale but they are trying to establish credibility and use free PR to get there.
Journalists are falling into the palm of Owen Kerr’s hands, he loves the free PR and free coverage he is getting in the media.
This is nothing but a PR Stunt.
Why would Pepperstone talk about an IPO pre-IPO, this is frowned upon by regulators.
Pepperstone have another agenda here, they are not look for an IPO or Sale but they are trying to establish credibility and use free PR to get there.
Journalists are falling into the palm of Owen Kerr’s hands, he loves the free PR and free coverage he is getting in the media.
@ Liam
the regulators must be FUMING over Twitter’s IPO then. They tweeted their intention to go IPO well before having any hard details in place or the deal complete
nearly every major IPO gets hyped up as the details come out, the business world doesn’t wait for a company to list before finding out their intentions
@ Liam
the regulators must be FUMING over Twitter’s IPO then. They tweeted their intention to go IPO well before having any hard details in place or the deal complete
nearly every major IPO gets hyped up as the details come out, the business world doesn’t wait for a company to list before finding out their intentions
More than 1/2 of their bizz is comprised of Japan/China, which they are unlincensed to on board. Couldn’t justify the M&A valuation and will now attempt an unrealistic IPOD bid…
More than 1/2 of their bizz is comprised of Japan/China, which they are unlincensed to on board. Couldn’t justify the M&A valuation and will now attempt an unrealistic IPOD bid…
All of this is nonsense. The numbers they give the media are suspicious. Do your math with the info they provided the Wall St Journal – its wrong. And how can they bigger than Dukascopy – at least this is what Forex magnates says.
There wont be any IPO or sale. Pepperstone are just going to benefit from the online chat the media is generating.
Its a Hoax.
All of this is nonsense. The numbers they give the media are suspicious. Do your math with the info they provided the Wall St Journal – its wrong. And how can they bigger than Dukascopy – at least this is what Forex magnates says.
There wont be any IPO or sale. Pepperstone are just going to benefit from the online chat the media is generating.
Its a Hoax.
PR stunt or not..but they have good execution, spread and trust.
PR stunt or not..but they have good execution, spread and trust.
Mark p is right, they operate out of aus into Asia without any offshore regulation. They have been blacklisted by the Japanese regulator (a list you not want to be on) by targeting japan with their Japanese language website. They also operate into Singapore illegally. They have a big unregulated Chinese business. All this with their Australian license with very little if any legal onshore business.
Best of luck to them, trying to find a buyer before anyone finds out…
There will be no IPO the concept is farcical.
Mark p is right, they operate out of aus into Asia without any offshore regulation. They have been blacklisted by the Japanese regulator (a list you not want to be on) by targeting japan with their Japanese language website. They also operate into Singapore illegally. They have a big unregulated Chinese business. All this with their Australian license with very little if any legal onshore business.
Best of luck to them, trying to find a buyer before anyone finds out…
There will be no IPO the concept is farcical.
@ C and Mark, you guys must be working for those brokers who are loosing business to them. I am willing to bet 200 yen on it. Get a life. Go make yr product better!!!
@ C and Mark, you guys must be working for those brokers who are loosing business to them. I am willing to bet 200 yen on it. Get a life. Go make yr product better!!!
Couldn’t this become a problem? The americans started to enforce this abroad too. If the Japanese and Chinese decide to do this too, i suppose the firm would be significantly lose in valuation.
Couldn’t this become a problem? The americans started to enforce this abroad too. If the Japanese and Chinese decide to do this too, i suppose the firm would be significantly lose in valuation.