Tags: Financial | Data | Markit | IPO

Financial-Data Provider Markit Expands Size of IPO

Wednesday, 18 Jun 2014 06:55 PM

Markit Ltd., the London-based financial-information provider whose price data forms the basis for much of the global derivatives and bond markets, raised $1.18 billion in a U.S. initial public offering, selling an increased number of shares at the midpoint of the range.

Markit’s stockholders, including Bank of America Corp., Citigroup Inc. and Deutsche Bank AG, sold 49.3 million shares for $24 each, according to data compiled by Bloomberg, after offering them for $23 to $25 apiece. Original plans had been to sell 45.7 million shares. The company won’t receive any proceeds from the IPO. The shares, listed on the Nasdaq Stock Market under the symbol MRKT, will begin trading Thursday.

Markit derives half of its revenue from selling financial data such as prices and indexes, with the rest split between processing trades for over-the-counter derivatives, currencies and loans. It has more than 3,000 institutional customers globally, which subscribe to the information, including more than 150,000 independent valuations and prices for 2 million bonds. The company also sells enterprise software platforms.

Markit competes with Bloomberg News parent Bloomberg LP in selling information and data to the financial industry.

Markit’s sales increased 10 percent to $947.9 million last year, according to the prospectus. The company is profitable, posting $230.1 million in operating income last year.

Chief Executive Officer Lance Uggla, 52, founded Markit in 2003 after serving as the head of credit trading and head of Europe and Asia at TD Securities.

Bank of America Corp., Barclays Plc, Citigroup Inc., Credit Suisse Group AG, Deutsche Bank AG, Goldman Sachs Group Inc., HSBC Holdings Plc, JPMorgan Chase & Co., Morgan Stanley and UBS AG are leading Markit’s IPO. The company has 15 underwriters, of which 12 are also owners selling shares.

Markit disclosed the underwriters in its prospectus, appointing Jefferies Group LLC as the qualified independent underwriter, since the New York-based firm holds no shares. Rothschild is serving as an independent equity adviser to Markit on the transaction, according to the filing.

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Markit Ltd., the London-based financial-information provider whose price data forms the basis for much of the global derivatives and bond markets, raised $1.18 billion in a U.S. initial public offering, selling an increased number of shares at the midpoint of the anticipated range.
Financial, Data, Markit, IPO
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2014-55-18
Wednesday, 18 Jun 2014 06:55 PM
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