Pepperstone IPO Chatter Getting Louder with Hiring of Berkshire Capital

Last month it was reported that Australian Forex Forex Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Foreign exchange or forex is the act of converting one nation’s currency into another nation’s currency (that possesses a different currency); for example, the converting of British Pounds into US Dollars, and vice versa. The exchange of currencies can be done over a physical counter, such as at a Bureau de Change, or over the internet via broker platforms, where currency speculation takes place, known as forex trading.The foreign exchange market, by its very nature, is the world’s largest tradi Read this Term broker, Pepperstone was contemplating an initial public offering (IPO) or sale. The fast growing broker who has grown its monthly Forex Trading Forex Trading Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Forex trading is the buying and selling of foreign currencies with the aim of generating a profit. The value of currencies, especially floating currencies, fluctuate to varying degrees. This constant volatility of exchange rates opens the door for speculators to invest in a certain currency against another. The Forex market is the world’s biggest and most liquid market, with over $5 billion turnover every single day, with the market being open 24 hours a day, 5 days a week.It goes without saying Read this Term volumes to $70 billion since launching in 2010, had reportedly rejected numerous buyout bids. In addition, following the successful IPO of OzForex, a foreign exchange transfer firm on the Australian Stock Exchange, it proved that there is demand in Australia for financial firms in the capital markets.

Today, chatter of possible IPO grew as the WSJ reported that Pepperstone has contracted Berkshire Capital, a New York-based investment bank that provides services to the Australian market through its local Sydney office. As a specialist in transactions, Berkshire may also have been brought in to help the broker negotiate better terms from its previous bidders. Speaking to Pepperstone CEO, Owen Kerr last month, he told Forex Magnates that, “Pepperstone is not closing the door on other offers that it may receive, and are open to other offers. We are interested in the potential and future.”

Despite being a healthy year for forex IPOs, as well as public brokers outperforming the market in 2013, the M&A market hasn’t been as kind. Recent deals of GAIN Capital purchasing GFT, as well as Swissquote’s buyout of MIG Bank featured low multiples on their revenues. Therefore, the highest multiples may only be available through tapping the IPO market.

One factor that could limit multiples from Australian brokers is potential regulatory changes in the country. The Australian Securities and Investments Commission (ASIC) published a warning about the risks of forex trading last week. The letter followed the liquidation of GTL Tradeup last month, after client funds were found to be missing from the Australian licensed broker. Using their ASIC licenses, brokers in the country have been successful in courting APAC country customers. Therefore, any restrictions on margin requirements or account funding could lead foreign traders to search elsewhere for their trading needs.