FINANCIAL data provider Markit yesterday unveiled plans for a US stock market listing that would value the firm at $5bn (£3bn), confirming that it will spurn the London Stock Exchange in favour of the United States.
Markit, which was founded by former bond trader Lance Uggla from his garden shed in St Albans in 2003, is expected to raise at least $750m in New York in the coming weeks.
London has struggled to attract large tech firms to its markets, apart from Just Eat and AO World, and Markit’s decision makes it the second high profile UK tech outfit to list in the US this year after Candy Crush-maker King, which raised $500m in March.
Earlier this year Markit’s US float was understood to have been delayed due to an ongoing probe by the European Commission into potential collusion between 16 banks and Markit in the credit default swaps market.
Markit last night listed the investigation as a key risk for prospective investors in its filing with the US Securities and Exchange Commission.
“We are subject to ongoing antitrust investigations and litigation arising from activities in the credit default swaps markets, and may in the future become subject to further investigations and litigation,” Markit said. “An adverse outcome in these investigations or litigation could... have a material adverse effect on our business.”
Markit’s float is being led by a group of 14 banks including Barclays and Credit Suisse, who are all stakeholders in the firm.