CMC Markets valued at £691m in IPO

Spreadbetting firm CMC Markets has priced its London stock market listing at 240p a share, giving the group a market capitalisation of around £691m and at the lower end of the 235p-275p range.

The offer comprises 90.6m ordinary shares, representing 31% of the issued share capital on admission.

The transaction size of around £218m includes a primary capital raise of approximately £15m, whith the balance of £203m comprising the sale of secondary shares by some of CMC’s existing shareholders, including founder Peter Cruddas and his wife Fiona, and Goldman Sachs Strategic Investments.

The Cruddas holding will be 62.5% of the group’s ordinary shares, while advisor Goldman Sachs will hold 4.99%.

Morgan Stanley, which is also an advisor, has been granted an over-allotment option of up to around 13.6m shares or 15%.

Chief executive officer Cruddas said: “The IPO marks the next step in our development. With our award-winning technology platform and our clear strategy for growth we look forward to the next chapter of the group's story with both excitement and confidence.

“Our performance since the start of 2016 continues to be strong, helped by the ongoing market volatility, and we start our life as a public company well-positioned for continued growth and to deliver value for all of our shareholders."