Top online broker, AvaTrade, is the latest big name to eye London for an IPO in the coming months. While precise timelines are yet to be confirmed, initial reports suggest the Dublin-based broker could be valued at between £500 million and £700 million.
AvaTrade IPO On The Horizon
The popular trading broker has selected JP Morgan and Jefferies to lead preparations for its expected listing. Whilst timings and valuations are subject to market conditions and investor confidence, the deal could be huge for the broker that has seen year-on-year growth and picked up multiple accolades since its inception in 2006.
AvaTrade could apply to be listed on the AIM market of the London Stock Exchange (LSE). The AIM is a sub-market of the LSE and is usually formed of smaller firms. The AIM also offers a more relaxed regulatory system versus the primary LSE.
Should the IPO go ahead, AvaTrade would join other big UK-listed brokerages, including the IG Group, Plus500 and CMC Markets.
The online broker’s valuation has jumped six-fold in the last five years which demonstrates its success at appealing to the retail trading market. AvaTrade’s recent growth has been driven in part by COVID-19, which has led to increased market volatility and seen the company’s customer base rise to 300,000 traders across 150 countries.
The top-rated forex broker is licensed with the CySEC and ASIC, among others, and offers both the MT4 and MT5 trading platforms. Over 50 forex pairs are available, along with major cryptos, indices, stocks, bonds, ETFs and commodities. In addition to an extensive product range, AvaTrade offers automated social trading and competitive market spreads.
With a lot to offer both new and experienced traders, the news of an upcoming IPO is perhaps unsurprising to many. If nothing else, it’s a strong indication that the broker is meeting the needs of online traders.