CMC Markets, an UK-based brokerage house has announced that it is about to raise around £231 million ($328 million) in the Initial Public Offering (IPO), when considering the mid point of the price range.
The IPO has already been announced at the beginning of this month, but the sum information has caught investors only today. CMC is seeking a price between 235p and 275p per share (ordinary). The amount of shares will be approximately 90.4 million, what makes around 31% of the ordinary shares of CMC.
The Uk broker has announced that the proceeds from the primary capital raise are about to meet the costs of the IPO and devise staff incentive plans for its key executives.
The base transaction size of £231 million also includes a primary capital raise by CMC Markets of approximately £15 million ($21.3 million). The IPO will also have an over-allotment option of up to 15 per cent of the base transaction size. The company has been preparing for the move since early December, when it appointed a set of new non-executive directors to its board. At the mid-point of the price range, CMC’s market capitalisation would be approximately £736 million.
An offer to institutional investors in couple of qualifying jurisdictions is about to be included, with a special offer to some clients, who meet specific criteria. All the clients, who are interested, should submit their applications by 22:00 GMT on Wednesday, the 3rd February 2016.
Clients who are willing to participate in the share offering are to submit their applications by 22:00 GMT on Wednesday, the 3rd February 2016. The latest date for private investors is the 3rd of February 2016, while institutional investors have to apply by the 4th of February 2016.
The official release on pricing will be made public on February 5, 2016, or around this date, while traders could take advantage of it from February 10, 2016.
Peter Cruddas, CEO of the CMC Markets stated in an official announcement:
“The IPO is an important step for the business, and I look forward to meeting prospective investors over the coming days and weeks. CMC is in a strong position and is enjoying another good financial year, as stated in our first half results. Our performance since then has been positive, and especially so since the start of the calendar year 2016 and through the recent market volatility,”
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