CMC Markets enters IPO with trepidation, floats 31% of shares totalling £218 million

In keeping with FinanceFeeds predictions in January, British spread betting and CFD firm CMC Markets has completed its initial public offering (IPO), floating 31% of the total stock held by the company, worth a total of £218 million. On January 12 this year, in the advent of the company’s shareholder meeting during which the final […]

London, Canary Wharf from Thames

In keeping with FinanceFeeds predictions in January, British spread betting and CFD firm CMC Markets has completed its initial public offering (IPO), floating 31% of the total stock held by the company, worth a total of £218 million.

On January 12 this year, in the advent of the company’s shareholder meeting during which the final decision to proceed with the IPO was made, FinanceFeeds reported that it was highly likely that the firm would not proceed initially into full flotation of the entirety of the company’s stock.

Today, as the company enters its listing on the London Stock Exchange’s main market, the company has been valued at $1.01 billion, equating to £691 million.

The conservative approach to public listing that has materialized today echoes the company’s perspective when it initially explored the possibility of listing in 2006 and subsequently postponed its IPO at that time.

The company, whose CEO is former Conservative Party treasurer Peter Cruddas, was dissuaded from going public in 2006 by advisers Morgan Stanley and Goldman Sachs, the latter of which took a 10% stake in the firm for $140 million in 2007.

The same institutions had advised caution this time round with regard to today’s IPO, urging caution and stating that either no IPO should proceed, or the firm should look toward a minimal percentage due to market conditions and volatility around equity markets which have blighted the stock venues of the world since the beginning of this year.

As predicted Peter and Fiona Cruddas will hold 62.5% of the firm’s ordinary shares, and Goldman Sachs Strategic Investments will hold five percent following the listing.

An all round conservative approach to public listing has afforded CMC Markets to enter the realms of the listed companies on London’s prestigious venue, whilst retaining the original structure in as much as Mr. Cruddas maintains majority control.

Read this next

Retail FX

ThinkMarkets expands CFDs lineup to over 4000 ETFs and shares

ThinkMarkets has expanded its service offering by incorporating 2500 new CFDs on shares and ETFs on its ThinkTrader platform.

Retail FX

France regulator warns investors of Omega Pro, Businessempire.fr

France’s financial markets regulator alerted investors that scams related to Omega Pro Ltd are beginning to circulate, with the blacklisted firm capitalizing on the situation to run a range of “unrealistic” offers.

Digital Assets

Web3 platform Grand Time paid $2 million in token earnings to date

Community-driven Web3 platform Grand Time said its offering – which includes a multifaceted platforms and its native token – has been gaining significant traction highlighted by impressive operational metrics.

Institutional FX

FX volumes at MOEX halved in April as ruble gains gorund

Currency trading at Moscow Exchange (MOEX) halted its upward route in April as monthly volumes nearly halved from a month earlier.

Digital Assets

FTX US adds stock trading, fractional shares to crypto platform

FTX US, the American subsidiary of crypto exchange FTX has kicked off stock trading feature to its customers in an effort to compete with popular platforms such as Robinhood and eToro.

Industry News

UK FCA empowered to remove brokers’ permissions in 28 days

Businesses with permissions they don’t need or use, risk misleading consumers. These new powers will enable us to take quicker action to cancel permissions that are not used or needed.

Industry News

CFTC charges $44m Ponzi scheme but millions may have fled to foreign crypto exchange

The CFTC alleged that defendants transferred millions of dollars to an off-shore entity that, in turn, may have transferred funds to a foreign cryptocurrency exchange. None of these funds were returned to the pool.

Technology

Saxo Bank deploys Adenza to address Basel and EBA requirements

The integration of ControllerView will enhance Basel-driven capital calculations and reporting at Saxo Bank in support of the bank’s multijurisdictional capital and liquidity reporting requirements throughout Denmark, Switzerland and UK, with plans to expand into the Netherlands.

Executive Moves

ComplySci appoints CTO, CPO, and CLO to further regtech’s product expansion

ComplySci offers compliance software used by more than 1400 global institutions to identify risk and address regulatory compliance challenges.

<