Plus500 (LON: PLUS), a retail broker, is evaluating options to list its shares in the United States as an alternative to its existing listing on the London Stock Exchange, The Times reported.

Plus500 Seeks to Improve Valuation

Though officially not confirmed, the decision is being fueled by frustration among the broker's management over the company's valuation. Currently, the broker is valued at £1.42 billion (about $1.8 billion), which is more than double its $832.6 million revenue in 2022 and about five times its profit of $370.4 million.

The London-listed broker already reported revenue of $207.9 million in Q1 2023, with an EBITDA of $100.9 million. According to analysts' consensus results, the broker is expected to generate $601.2 million in revenue in 2023, while the EBITDA is estimated at $266.9 million and earnings per share at $2.43. The debt-free company closed Q1 with over $950 million in cash balances.

Plus500 share price has rallied since April 2019 but has dropped significantly in the last six months. The broker's share is trading at £15.69 compared to a 52-week high of £19.78. The company is also actively repurchasing its shares from the market with an ongoing buyback program worth $70 million. As well as that, the Israeli broker distributed $30 million in dividends to its shareholders in 2022.

Finance Magnates reached out to Plus500 for its official response on the possibility of a US listing, but the broker declined to comment.

US Expansion of the Broker

Meanwhile, Plus500 is expanding its presence in the United States. It entered the US market in 2021 with the acquisition of Cunningham Commodities and Cunningham Trading Systems. It launched a US-specific proprietary futures trading platform in Q3 2022.

Additionally, the broker made its US ambitions prominent when it signed a four-year sponsorship deal with Chicago Bulls, a US-based professional basketball team, after ending its eighth-year-long partnership with Spanish football club Atlético de Madrid.

Furthermore, Plus500 strengthened its presence in the Middle East by obtaining a license from the Dubai Financial Services Authority (DFSA) earlier this year. Now, the company is holding twelve regulatory licenses globally.

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