Marex Spectron Group Ltd said it is considering an initial public offering (IPO) on the premium segment of the London Stock Exchange’s main market and that it plans to publish a registration document later today.
The commodities broker said it has a strategy to deliver “continued, profitable growth through building competitive advantage in its businesses, including by expanding its asset classes into adjacent product categories and expanding its geographical coverage”.
Marex also said there is a “substantial opportunity for consolidation” in the fragmented markets in which it operates, adding that in the year ended December 31, 2020, its adjusted pre-tax profit had increased 15.2% to US$61.5mln alongside a 17.7% jump in revenue to US$414.7mln.
In terms of a potential offer, the company said it expects to target institutional investors and will offer existing shares which will be sold by certain existing investors in the company.
“During the past 10 years we have worked to build a leading diversified market liquidity provider. This has been achieved through a series of strategic acquisitions, as well as the continual diversification of our earnings and extension of the customer base by increasing our geographical presence and our product set. Marex is able to provide access to the world’s largest commodity markets with our broad and specialised offering which enables the business to serve the diverse needs of the largest commodities and financial markets clients,” Marex chief executive Ian Lowitt said in a statement.
“Marex is an agile, technology driven business, with advanced data and analytics capabilities, operating in a growth market with high barriers to entry. 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,” he added.