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British commodities broker Marex has filed confidential documents to list in the United States, rebuffing London after the company abandoned a plan to list on its home exchange two years ago.
The group aims to go public next year after filing documents with the U.S. Securities and Exchange Commission, according to people familiar with the matter.
The target valuation is expected to be between $2.2 billion and $2.8 billion, about three to four times more than the previous target when Marex sought to list on the London Stock Exchange in 2021, the people said.
The move is likely to be the first test of investor interest in new U.S. IPOs after a tepid 2023, when falling valuations and rising market volatility deterred companies from going public. Bankers hope the market will become cheaper in the first quarter of next year.
Marex’s decision to move to New York is also a blow to London after the financial services group conducted an assessment of both markets to restart its IPO. The group, which acts as an intermediary for deals in energy, agriculture and securities markets, blamed poor market conditions for the cancellation of its IPO in 2021.
It also adds to numerous disappointments this year for the London stock market, which suffered from low trading volumes and struggled to attract and maintain quotes.
Some companies, including Irish duo CRH and Smurfit Kappa, have left the LSE and turned to New York because the US economy is a significant contributor to sales and stock market valuations tend to be higher. German tour operator Tui said this week it may leave London to focus on its main entry in Frankfurt.
Marex has been majority owned for more than a decade by private equity group JRJ as well as partners Trilantic Europe and BXR Group, who want to make money through the stock market listing.
The group, which handles trading and derivatives hedging for major commodity producers and consumers, has grown partly through acquisitions since being acquired by JRJ in 2010.
The company specializes in clearing, risk and pricing technology and bought rival broker ED&F Man Capital Markets last year. The acquisition has helped its U.S. business match the size of its European business, which traditionally generates the majority of its revenue.
Marex more than doubled pre-tax profit in the first half of 2023 to $120 million on revenue of $1.2 billion, citing “significant growth in our operations in North America.”
The company employs around 1,800 people and is one of only eight brokers with trading rights on the historic floor of the London Metal Exchange.