Plus500 decided to go public to enhance its market presence. The retail Forex broker planned to do so through offering an initial public offering.
The online trading platform operator has already sent a letter of intent to the London Stock Exchange (LSE). According to the letter, Plus500 aimed to bring shares on AIM, a submarket of LSE. The reason for trading in LSE is that about 40% of the company's revenues come from the United Kingdom. Around 90% of Plus500's revenues come from Europe.
The IPO has several objectives. Plus500 aimed to raise new funds through the IPO. It will then use these funds to increase awareness of the market. Through marketing activities, the company aimed to enhance brand awareness as well as open new opportunities. It also wanted to increase the willingness of customers worldwide to go into derivative products trading.
Both new and existing ordinary shares will be offered by the company. These shares were expected to raise up to US$50 million in gross proceeds. Liberum Capital Limited, working as nominated adviser and broker, will be facilitating the whole process.
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