A member of the London Metal Exchange has decided to list in the US rather than the UK, in another blow to the beleaguered stock market.
Marex has filed preliminary documents with the US Securities and Exchange Commission for an initial public offering (IPO), two years after abandoning plans to list in London.
The company had abandoned an IPO on the London Stock Exchange in 2021, citing difficult market conditions. At the time, the listing was valued at £500 million.
Marex’s decision to turn to New York rather than revive plans to list in London deals another blow to the reputation of the British financial center.
Executives and politicians are facing a slow decline in the British stock market, with companies choosing to switch from the London Stock Exchange to the New York or Amsterdam stock exchanges.
Earlier this year, Cambridge-based chipmaker Arm chose to list on Nasdaq instead of London, and companies such as Ferguson, Tui, CRH and Flutter Entertainment are either leaving London or seeking secondary listings elsewhere.
Flutter, which owns gaming brands including Paddy Power, confirmed Friday that it hopes to list in New York by the end of January, though it will keep its listing in London for now.
Companies are attracted to the U.S. by the higher valuations investors typically place on new listings, increased market liquidity, and higher salaries and bonuses for executives.
Marex is aiming for a much higher valuation than the one it had hoped for in London. According to the Financial Times, the company hopes to be valued at up to $2.8 billion (£2.2 billion).
Further details have not yet been disclosed, but the IPO is likely to take place next year, after the SEC reviews the offer.
Founded in 2005, Marex offers a range of trading and brokerage services to clients including banks and hedge funds. The company is a primary member of the historic London Metal Exchange, which allows its employees to trade on the open market “ring.”
Marex has 1,600 employees worldwide, with 29 offices in the US, UK, Europe and Asia. Last year, the company’s revenue rose 21 percent to $1.34 billion and pre-tax profit was $121.6 million.
After scrapping plans for a London flotation, the company has become more focused on the US. It bought EDF Man’s capital markets division for $220 million, allowing it to enter the U.S. market.
The majority owner of Marex is private equity firm JRJ Group, founded by former Lehman Brothers bankers Jeremy Isaacs and Roger Nagioff.
The private equity group invested in Marex in 2010 and has seen it grow through a series of acquisitions over the past 13 years.
JRJ is expected to make a significant profit once the group goes public.
Marex is led by chief executive Ian Lovitt and is chaired by former banker Robert Pickering.