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 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.