Markit cashes in with $1.3bn IPO

IPO WATCH: The UK-based financial data provider is expected to raise more than it anticipated when it floats on New York's Nasdaq.

by Rachel Savage
Last Updated: 19 Jun 2014

It’s a bounteous day for shareholders of financial data provider Markit, which is floating today on New York’s Nasdaq. Investors will rake in a total of $1.3bn (£760m), after selling off millions more shares than they originally expected.

Shares are floating at $24, in the middle of its mooted $23-$25 range. However, 53.5 million are being sold, instead of the 45.7 million planned initially, according to the Wall Street Journal.

That means a payday of $1.2bn for banks including Goldman Sachs, Citigroup, Deutsche Bank and Bank of America Merrill Lynch, while hedge funds and some former and current employees are also cashing in. One of Canada’s largest pension funds said it was planning to buy $450m worth of shares in the IPO prospectus.

Markit was founded 11 years ago by a group of former credit traders and will now be worth around $4.3bn. Last year it made profits of $139m on revenues of $948m.

The IPO is a coup for Nasdaq and a definite snub for the London Stock Exchange, as Markit has its headquarters in the City. Candy Crush-maker King also spurned London for New York back in March (the New York Stock Exchange rather than Nasdaq), but paid dearly for a frothy valuation: shares are still 6.89% below their offer price.

Markit will no doubt be hoping its float will be rather sweeter, and with a more sensible valuation it could be pretty tasty for investors.

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