Commodity broker Marex is considering listing in New York as it looks to revive its plans for an initial public offering, in the latest sign that the London stock market is losing its lustre, according to the Financial Times.
The London-headquartered group cancelled a listing in the UK capital in 2021 with a targeted valuation of between US$650mln and US$800mln, but is now assessing both cities for a share sale that could take place early next year if market conditions are appropriate.
Chief executive Ian Lowitt said in an interview that the likely continuation of strong earnings next year meant that Marex’s private equity owners were beginning to revive exit plans and that these could include a listing.
“What we are seeing in 2023 creates optionality for shareholders. The business might come up for IPO,” he said.
“It’s something that people are thinking about given the performance of the firm.”
A valuation of between US$1.6bn to US$1.7bn is expected for the broker.
The company, which puts on trades and derivatives hedges for big commodity producers and consumers, pulled its listing plans two years ago because of weak market conditions; at the time, a throng of newly listed companies, including food delivery group Deliveroo, underperformed.
The decision by Marex to put New York in the running as the listing venue further stokes debate over the competitiveness of the London market that has been ignited by several companies — including CRH, the world’s largest building materials group — ditching or reconsidering the UK capital.
On Wednesday, Holiday Inn owner InterContinental Hotels Group warned that the UK stock market was “not a very attractive place” for listed companies.