One of the leading connectivity providers for institutional foreign exchange and futures financial products, Beeks Financial Cloud, intends to go public on the AIM Market of the London Stock Exchange. The company shared with Finance Magnates that it intends to raise up to £7 million ($9.2 million) through the placing of new and ordinary shares.
The total valuation of Beeks Financial Cloud after the admission to the LSE is expected to reach £24.5 million ($32.2 million). The company expects to get admitted for trading around the 27th of November 2017. Up until now, the company’s business has been self-funded.
Commenting to Finance Magnates on the move, Beeks CEO Gordon McArthur said: “It was always our intention to go public to raise finance. Capital markets are our entire business so going elsewhere seemed illogical. We have been looking at it and felt market conditions were right and the timing was right for the company to do it now.”
The company already has the backing of several institutional investors like Hargreave Hale, Octopus, and Livingbridge. The firms will be major shareholders after the admission of the company to the LSE.
Financial Details and More
Beeks Financial Cloud was founded in 2011 and has been consistently posting positive results over the past several years. For the year ending on the 30th of June 2017, the company’s revenues totaled £4 million, which is higher by 48.2 percent when compared to the previous full year’s result of £2.8 million.
The main driver of the company’s growth in recent quarters has been upselling to existing clients and the onboarding of new institutional clients. The company’s pure cloud solution has yielded the firm a number of clients. Beeks Financial Cloud currently has about 165 institutional customers and over 6,000 Virtual Private Server (VPS) customers.
More than 30 forex brokers, that include some of the largest, are using the company’s solutions as white label partners.
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Rigorous IPO Process Matters a Great Deal
We asked Mr. McArthur what the perks of the IPO process are nowadays, as the ICO market is growing. He shared that the complex procedure through which a company goes to get listed on the LSE is burdensome, but also valuable.
“One of the reasons for doing an IPO is to go through the rigor audit and process verification of being fit for and part of a public market. This gives our clients, who are outsourcing mission-critical systems to us, the comfort that Beeks adheres to the processes and procedures required. We wanted to run the business in a clear and transparent regulated market,” he explained.
Elaborating on the company’s future plans, he said: “We are looking at M&A from a strategic value-add purchase to our offering and also acquisitions of players in our existing space.”
Low Latency and High Retention
There hasn’t been a time in history when high-speed trading was this popular. An ever-growing appetite for speed on Wall Street has been a key driver of the company’s business. Beeks is focused on providing solutions for latency-sensitive automated trading environments. The company’s ‘on demand’ low latency computing resources have been tailored to the needs of institutional clients from the financial industry.
Last week Beeks Financial Cloud added a brand new function to its offering. The company, which is one of the largest cloud services providers in the FX industry, deployed its Self Service Partner Portal last week.
Institutional clients of Beeks Financial Cloud have been enabled to manually configure their infrastructure and connectivity needs. The user-friendly solution enables real-time access to all 9 Financial Global Datacentres and all 100 Beeks Cloud direct connects that are on offer. The flexibility of the company’s offering has yielded strong revenue growth since 2014.
During the past year, the institutional business segment of the company skyrocketed from 90 clients in July 2016 to 164 as of September 2017. The company also states that it has achieved a high rate of retention of customers, which speaks volumes about its quality of services.
Cenkos Securities is the company that is acting as nominated adviser and broker in relation to the listing of Beeks Financial Cloud.