Markit Ltd IPO-MRKT.O priced its initial public offering at $24 per share, valuing the financial information service provider at about $4.3 billion, the Wall Street Journal reported, citing sources.
Markit's IPO raised about $1.2 billion, after the company priced its enlarged offering of 49.3 million shares at the mid-point of its expected price range of $23-$25 per share, the Journal said. (on.wsj.com/1nQdBFz)
The company, which competes with Bloomberg and Thomson Reuters Corp (TRI.TO) (TRI.N), said selling shareholders, including certain employees and members of the management, sold all the shares in the offering.
Founded by Canadian Lance Uggla in 2001, Markit provides pricing and reference data and indices and valuation services. The company serves more than 3,000 institutional customers globally, including banks, hedge funds and asset managers.
Singapore state investor Temasek Holdings Pte Ltd [TEM.UL]holds about a 10.47 percent stake in Markit through its wholly owned subsidiary, Esta Investments Pte Ltd.Markit, which has more than 3,200 employees, also counts Bank of America Corp (BAC.N), Deutsche Bank AG (DBKGn.DE) and Goldman Sachs Group Inc (GS.N) among its major stockholders. These firms also use Markit's financial data and trade processing services.Bank of America's stake in Markit will fall to 4.6 percent from about 8 percent after the IPO, while Esta Investments will trim its stake slightly to 10.38 percent.Markit's profit attributable to equity holders fell about 21.5 percent to $39.8 million for the quarter ended March 31. Revenue rose about 14 percent to $259.4 million.The company's information unit, which offers products for independent valuations, trading, and liquidity and risk assessments, contributes about 49 percent of its revenue.
Markit is expected to debut on the Nasdaq on Thursday under the symbol "MRKT".
BofA Merrill Lynch, Barclays, Citigroup and Credit Suisse were among the lead underwriters for the IPO.
(Reporting By Neha Dimri in Bangalore; Editing by Simon Jennings)