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Financial service provider Markit's IPO raises $1.2 billion
June 19, 2014 / 2:00 AM / in 3 years

Financial service provider Markit's IPO raises $1.2 billion

(Reuters) - Markit Ltd MRKT.O said it priced its initial public offering at $24 per share, valuing the financial information service provider at about $4.3 billion.

Markit’s IPO raised about $1.28 billion, after the company priced its enlarged offering of 53.5 million shares at the mid-point of its expected price range of $23 to $25 per share.

The company, which competes with Bloomberg and Thomson Reuters Corp TRI.TO TRI.N, said the selling shareholders, including certain employees and members of 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 and Ken Wills

Our Standards:The Thomson Reuters Trust Principles.
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