Tradeweb to Sell 14.8 Million Shares of Class A Common Stock

Tradeweb plans to repurchase equity interests from certain existing owners with the funds generated.

Tradewebs Markets Inc. announced this week that it has launched an underwritten offering of 14,800,000 shares of its Class A common stock, depending on market conditions and other factors.

Furthermore, the company expects to allow the underwriters a 30-day option to buy an additional 2,220,000 shares of Class A common stock at the public offering price, minus the underwriting discounts and commissions.

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With the funds the firm expects to make from the offering, Tradeweb plans to repurchase equity interests from certain existing owners. However, Refinitiv will maintain its controlling interest in the electronic marketplace operator.

Tradeweb reveals solid performance in Q3

In conjunction with this week’s announcement, Tradeweb has also published its preliminary financial results for the third quarter and the first nine months of 2019. It is important to keep in mind that these figures are based on current estimates and remain subject to completion.

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As Finance Magnates reported, the electronic marketplace operator for rates, credit, equities, and money markets, achieved a solid third quarter in terms of trading volumes. In fact, Tradeweb posted a new quarterly record for average daily volume in the third quarter.

Taking a look at the preliminary results, the solid trading volumes have also resulted in a strong financial performance. Namely, gross revenue for the three months ended September 30, 2019, came in at $200.98 million.

When measuring this against the same period of the previous year, which reported gross revenue of $165.25 million, the value recorded in Q3 of 2019 is higher by 21.6 percent, or $35.73 million.

Contributing the most to revenues is the company’s rates segment. In particular, Tradeweb posted gross revenue of $115.51 million. This represents a 24.7 percent uptick year-on-year.

Total expenses for the three-month period came in at $142.72 million, and net income was $48.58 million, whereas net income attributable to Tradeweb Markets Inc. was $29.61 million.

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