Marex heads to New York in fresh City snub

Marex has announced plans to list in New York in the latest blow for the London stock market.

The commodities broker, which is a member of the London Metal Exchange, yesterday said it has filed documents with the US regulator ahead of launching an initial public offering (IPO).

Marex, which is backed by British private equity firm JRJ, abandoned an attempt to list in London two years ago, citing difficult market conditions.

The firm’s decision to revive its plans to float in New York is the latest snub for the City.

It follows Cambridge-based chipmaker Arm’s choice to list in the US earlier this year.

Leaving: Marex abandoned an attempt to list in London two years ago, citing difficult market condition

MPs yesterday slammed the ‘limited’ impact of the Government’s program to overhaul City regulations to make London a more attractive place to do business.

The Treasury Committee branded the Government’s so-called Edinburgh Reforms ‘a damp squib’ as a tide of companies abandon the Square Mile. Marex confirmed yesterday it has confidentially submitted a draft registration statement to the US Securities and Exchange Commission (SEC).

The size and price range of its proposed offering has not yet been confirmed, and the IPO will take place after the SEC review process, ‘subject to market and other conditions’.

According to reports, it is targeting a valuation of between £1.8billion and £2.2billion, which is three to four times more than its goal when it planned to list in London in 2021.

Broker Interactive Investor’s head of markets Richard Hunter said: ‘The decision is the latest blow to London’s reputation as a global investment hub.

‘The calls for reform in the UK market will now become a little louder.’ And yesterday Paddy Power owner Flutter confirmed it will make its debut on the New York Stock Exchange next month as it eyes further growth in the US.

Flutter, which also owns Betfair and Poker Stars, will not be delisting from London in the process and will remain in the FTSE 100. Flutter said it will cancel its secondary listing in Dublin.

Last week, travel operator Tui said it was considering delisting from London and upgrading to a premium listing in Germany. It said most of its shares are owned and traded in Frankfurt.

Arm listed in New York in September and CRH, the Irish building supplier, swapped its listing from London to New York this year.

Last summer, FTSE 100 plumbing giant Ferguson ditched London as its primary listing in favour of New York after it sold its UK business to US private equity firm Clayton, Dubilier & Rice.