Marex Files for US Listing, Dealing a Blow to London Stock Market

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UK commodities brokerage Marex has chosen to file confidential paperwork for an initial public offering (IPO) in the US, opting for a New York listing over its home stock market in London. The move follows Marex’s decision to abandon its plan to list on the London Stock Exchange in 2021, citing poor market conditions. The group’s targeted valuation for the US IPO is reportedly between $2.2 billion and $2.8 billion, significantly higher than its previous goal. Marex’s move to list in the US is seen as an early test of investor appetite for new listings in 2024, with hopes for a more favorable market.

Marex’s decision to list in New York is considered a setback for London, which has faced challenges such as low trading volumes and difficulties in attracting and retaining listings. Several companies, including Irish firms CRH and Smurfit Kappa, have shifted their listings to New York due to the higher stock market valuations and the significant contribution of the US economy to their revenues. The London Stock Exchange has experienced disappointments throughout the year, with some companies contemplating a move to other financial centers.

Majority-owned by private equity group JRJ, along with partners Trilantic Europe and BXR Group, Marex plans to capitalize on the IPO. The brokerage, serving as an intermediary in energy, agriculture, and securities markets, has expanded through acquisitions since its acquisition by JRJ in 2010. Marex has recently grown its US business, particularly following its acquisition of rival broker ED&F Man Capital Markets in the previous year. The group’s first-half 2023 pre-tax profit doubled to $120 million on $1.2 billion of revenues, emphasizing significant growth in its North American operations. Marex employs approximately 1,800 people and holds trading rights on the historic trading floor of the London Metal Exchange as one of only eight brokers.