Plus500, a global CFD broker, is going public. A leading broker, founded in Israel in 2008, Plus500 hopes to raise $50 million by posting an IPO on London's Alternative Investment Market (AIM).
Plus500"²s offering will be what is called a combined primary and secondary offering wherein half of the proceeds of the offering go to the company and half go to some of the company's existing shareholders who will be selling some of their shares in the IPO. The transaction accounts for 25% of Plus500, currently valued at $225 million. The remaining 75% will be retained by the founders. The AIM listing is being handled by the Liberum Capital Consulting Firm.
Plus500 claims to be one of the world's leading brokers with an annual turnover of $56 million and $23 million of profit (pre-taxes). The first quarter of 2013 has shown a $7 million profit before tax. With these numbers, one can certainly wonder why Plus500 has chosen to list itself on an exchange made up primarily of junior businesses and small companies. In contrast, the truly top-tier brokers such as Gain Capital, and FXCM are traded on the more prestigious New York Stock Exchange.
Plus500 maintains offices around the world and is governed by local regulatory authorities as well as the United Kingdom's FSA (Financial Services Authority.)