One of the big UK Forex and CFDs brokers, CMC Markets, has officially announced its intention to proceed with an IPO. The company will apply for an admission of its ordinary shares to the premium listing segment of the Official List of the FCA and will be trading on the main market of the London Stock Exchange plc.
CMC Markets has a special offer for its clients depending on the amount of shares they are willing to purchase. Customers may purchase from £500 to £20,000 worth of shares depending on their trading costs per month that they paid between the 13th of January 2015 and the 12 of January 2016.
Divided into three tiers, the clients of CMC Markets that have paid above £500 per share in commissions to the brokerage will be able to purchase up to £20,000 worth of shares. Clients with trading costs from £100 to £499 are eligible for up to £5,000 worth of shares, while those who have paid between £10 and £99 per share will be able to purchase between £500 and £1000 worth of shares.
For new clients the share offering will be based on their total trading cost between 13th January 2016 -25th January 2016. Existing clients can improve their tier in this period and the best tier achieved will be designated to the customer. The company is also offering one bonus share for every ten shares if a client holds them for 12 months.
No details about the floatation have been officially provided, but are expected to become available in the coming weeks.
Key metrics of CMC Markets, Source: CMC Markets
The CEO of the company, Peter Cruddas, stated: ”Bringing CMC to the public markets will enable us to continue to grow our global brand, build our client base, attract and retain employees and enhance our ability to enable retail traders around the world to trade.”
Finance Magnates reported earlier in December that the company is very close to an Initial Public Offering and today’s announcement is putting the nail in the coffin of speculation on the matter.
The Non-Executive Chairman of CMC Markets, Simon Waugh, explained the new changes to the board, which Finance Magnates reported on in December: “Supported by a strong Board with a majority of independent non-executive directors, we have a management team ready to build on our excellent foundations and offer investors a balance of growth and shareholder returns."
Some key figures from CMC Markets
The company had 44,017 active clients who had traded in the 6 months till the end of September 2015, with the company processing approximately 45 million and 34 million trades in the financial year ended 31 March 2015 and in the six months ended 30 September 2015, respectively.
The firm has also highlighted that for the six months ending 30 September 2015, 48 per cent of the trading volumes were transacted through mobile devices.
The operating margin of CMC Markets has been steadily growing over the past couple of years, reaching 42 per cent in 2015, from 12% in the financial year the ended on the 31st of March 2013.
Most recently, for the six months ending 30 September 2015, the Group reported Net Operating Income and EBITDA of £78.9 million and £30.1 million, respectively, 34% and 72% ahead of the same period last financial year.
