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* Company valued at $4.83 billion at intra-day high
* Bank shareholders raised about $1 billion from the
* BofA, Barclays, Citigroup and Credit Suisse among lead
By Amrutha Gayathri
June 19 Shares of Markit Ltd rose as
much as 12.5 percent in their market debut, valuing the
financial data provider at $4.83 billion and raising about $1
billion for its 12 bank shareholders.
Highlighting strong demand for the shares, the size of the
offering was increased by 17 percent to 53.5 million shares. The
offering was priced at $24 per share, the mid-point of the
expected price range, raising $1.28 billion.
All shares were offered by selling shareholders, which
include Wall Street's biggest banks such as Bank of America Corp
, Goldman Sachs Group Inc and JPMorgan Chase & Co
After the offering, the combined stake owned by the banks
fell to 32.7 percent from 53.2 percent. The banks are expected
to have raised as much as $1 billion from the offering.
The company's biggest shareholders - Employee Benefit trust,
private-equity firm General Atlantic LLC and Singapore state
investor Temasek Holdings Pte Ltd - held on to their stakes.
Markit appointed Jefferies Group LLC as an independent
underwriter, citing conflict of interest as its lead
underwriters are also its selling shareholders. Jefferies holds
no shares in the company.
The company also appointed Rothschild as an additional
adviser though the firm had no underwriting duties in the
Markit's shares opened at $26.15 on the Nasdaq on Thursday
and touched a high of $26.99. They closed up 11.25 percent at
Founded by Canadian Lance Uggla in 2001, London-based Markit
has more than 3,000 institutional customers globally, including
banks, hedge funds and asset managers.
The company, which provides pricing and reference data,
indexes and valuation services, competes with Thomson Reuters
Corp and Bloomberg LP among others.
Markit posted a profit of $147 million on revenue of $947.9
million in 2013.
Markit said United States accounts for nearly half of its
total revenue, while the European Union is its second biggest
market, contributing about 40 percent.
Canada Pension Plan Investment Board said it would invest
$450 million in the company through a private placement at the
IPO price, giving it a 10 percent stake in the company. It will
also nominate a director to Markit's board.
BofA Merrill Lynch, Barclays, Citigroup and Credit Suisse
were among the 10 lead underwriters for the offering.
(Reporting by Amrutha Gayathri and Tanya Agrawal in Bangalore;
Editing by Joyjeet Das and Saumyadeb Chakrabarty)