Marex, one of the largest privately-owned commodities brokers, has confirmed that the company is considering floating its shares on the London Stock Exchange (LSE), Reuters reported on Friday.
Though the company officials did not disclose any pricing details, it will push for a free float of at least 25 percent of its total shares. Company insiders revealed that the broker is targeting to end the listing by the end of June. At the listing, it can be valued at 500 million pounds (around $703 million).
The company has onboarded Goldman Sachs and JPMorgan as joint global coordinators on the deal.
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Gaining from Jump in Industry Demand
Marex is owned by JRJ Group, a private equity firm set up by the two ex-Lehman Brothers investment bankers, and its two partners, Trilantic Capital Partners and BXR Group, which purchased a majority stake in the broker in 2010.
The owners of the company have been looking for an exit strategy for years now but have failed. Now, with a boom in the brokerage market, they have changed their strategy to take the company public instead.
Marex operates on the open outcry floor of the London Metal Exchange and is one of the five exchanges to operate in the venue. The company reported almost an 18 percent jump in its revenue in 2020 to $414.7 million, while the pre-tax operating profits for the year upped by 15.2 percent to $61.5 million.
“The attractiveness and resilience of our business model is demonstrated by our latest set of results which showcase continued strong performance despite the obvious macro headwinds. I am excited about the next stage of our development and the growth opportunities ahead. We look forward to generating continued value for all our stakeholders,” Marex CEO, Ian Lowitt said.