I want to be a part of it: London-broker Marex weighs up New York for potential IPO
A record set of results for London-based commodities broker Marex has revived the prospect of an initial public offering (IPO) for the firm – but bosses say they may be eyeing New York as a destination.
Marex, one of the world’s largest privately-owned commodities brokers, reported a 53 per cent surge in adjusted pre-tax operating profit to $121.7m (£97.3m) today, as net revenue jumped 29 per cent to $701m.
The record results come after the firm snapped up ED&F Man Capital Markets last year to boost its metals business and expand in fixed income and equities. The deal saw the firm boost its client funds by 139 per cent to $12bn, with $4.5bn added through the takeover.
While Marex was forced to shelve an initial public offering in 2021 due to turbulence on the markets, the bumper results today could mean the plans are back on the table, bosses said.
“Were we come to market and look to IPO, what investors would see is a very different firm to the one they saw a couple of years ago,” Marex chief executive Ian Lowitt told Reuters.
“Private equity does look to exit and the firm has been transformed so that means when markets reopen that will be an obvious thing for our owners to consider.”
However, Lowitt told the Financial Times that New York was in the running alongside London as a potential destination for an IPO.
The move would strike another major blow to the City after a series of major snubs in recent months, including the move from British chipmaker Arm to opt for a Nasdaq listing.
Officials and political figures have been scrambling to boost the appeal of London in recent years with a slew of reviews designed to slash red tape and make the capital a more attractive place to list.
Marex is majority-owned by private equity firm JRJ Group and its partners, Trilantic Europe and BXR Group, which bought stakes in the broker in 2010.
The ED&F Man acquisition last year swelled Marex’s presence in Dubai and the US, with the US operation now rivalling the size of its historically dominant European business.