TP ICAP plc (LON:TCAP) has fully underwritten rights issue for raising approximately £315 million ($427 million), the company announced on Thursday. The proceeds will be utilized in its acquisition of private trading operator, Liquidnet and its subsidiaries.
The London-listed company first publicized its intentions for the acquisition last September when the two parties already started talks. The companies agreed on definitive terms as TP ICAP agreed to pay between $575 million and $700 million.
The London Stock Exchange
Stock Exchange
A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges.
A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges.
Read this Term filing revealed that the company is proposing to offer 225,334,552 new ordinary shares with the rights issues. The shareholders of the company will be able to purchase shares from the rights issues at a discount of around 43.2 percent on the closing market price of TP ICAP shares on January 6.
The right issues did not come as a surprise as the company already explained its financing plans for the deal earlier. Apart from the proceeds acquired from the right’s issues, it will source $100 million from the existing debt facilities, and a further $50 million will be paid at the completion of the third year of the deal.
“This acquisition is a unique opportunity to transform TP ICAP's growth prospects by materially accelerating our stated strategy of electronification, aggregation, and diversification,” TP ICAP CEO, Nicolas Breteau said in the statement.
“We believe our two businesses are highly complementary, and the deal, when completed, will help us to drive growth and shareholder value in the medium to long term.”
Demand Is Marginally Down
Meanwhile, TP ICAP published a trading update for last year 1 percent lower on a constant currency basis and 2 percent lower on a reported basis for the first nine months of 2020.
“While trading volumes continued to be subdued during much of Q4 2020, we expect revenue for the full year 2020 to be 1% lower than the prior year,” the company wrote.
TP ICAP plc (LON:TCAP) has fully underwritten rights issue for raising approximately £315 million ($427 million), the company announced on Thursday. The proceeds will be utilized in its acquisition of private trading operator, Liquidnet and its subsidiaries.
The London-listed company first publicized its intentions for the acquisition last September when the two parties already started talks. The companies agreed on definitive terms as TP ICAP agreed to pay between $575 million and $700 million.
The London Stock Exchange
Stock Exchange
A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges.
A stock exchange, also known as a securities exchange or bourse represents is a facility where stockbrokers and traders can buy and sell securities.This includes shares of stock, bonds, exchange-traded funds (ETFs), or other financial instruments. By extension, stock exchanges can also provide facilities for the issue and redemption of such securities and instruments and capital events including the payment of income and dividendsStock exchanges have developed into a permanent fixture in the financial market and some of the most visible entities in the entire industry. Nearly every developed country boasts a domestic stock exchange, with many varying in importance and size.The largest stock exchanges in the world as of May 2020 include the New York Stock Exchange (NYSE), NASDAQ, Tokyo Stock Exchange, Hong Kong Stock Exchange, London Stock Exchange, EURONEXT, and Shenzen Stock Exchange. What Functions Do Stock Exchanges Perform?Stock exchanges have a variety of utility within the modern financial system. As its name suggests, a stock exchange is often the most important component of a stock market.Another crucial element of stock exchanges is the prevalence of initial public offerings (IPOs) of company stocks and bonds to investors. This is performed in both the primary market and subsequent trading the secondary market.Not any company or entity can be included on a stock exchange. To be able to trade a security on a certain exchange requires the listing of specific securities. Trading on an exchange is restricted to certified brokers who are members of the exchange. The traditional image of crowded trading floors has waned in recent years to include other various other trading venues.This includes electronic communication networks, alternative trading systems and "dark pools" which have ultimately seen the migration of trading activity away from traditional stock exchanges.
Read this Term filing revealed that the company is proposing to offer 225,334,552 new ordinary shares with the rights issues. The shareholders of the company will be able to purchase shares from the rights issues at a discount of around 43.2 percent on the closing market price of TP ICAP shares on January 6.
The right issues did not come as a surprise as the company already explained its financing plans for the deal earlier. Apart from the proceeds acquired from the right’s issues, it will source $100 million from the existing debt facilities, and a further $50 million will be paid at the completion of the third year of the deal.
“This acquisition is a unique opportunity to transform TP ICAP's growth prospects by materially accelerating our stated strategy of electronification, aggregation, and diversification,” TP ICAP CEO, Nicolas Breteau said in the statement.
“We believe our two businesses are highly complementary, and the deal, when completed, will help us to drive growth and shareholder value in the medium to long term.”
Demand Is Marginally Down
Meanwhile, TP ICAP published a trading update for last year 1 percent lower on a constant currency basis and 2 percent lower on a reported basis for the first nine months of 2020.
“While trading volumes continued to be subdued during much of Q4 2020, we expect revenue for the full year 2020 to be 1% lower than the prior year,” the company wrote.
