Markit Begins $1 Billion IPO, Firm Will Not Receive Any Proceeds

Markit has begun its initial public offering, which will be listed on NASDAQ and will likely raise over a billion dollars, though the company itself is not selling any shares and will not receive any proceeds from the offering.
By Jake Safane(2147484770)
Markit has begun its initial public offering, which will be listed on NASDAQ and will likely raise over a billion dollars, though the company itself is not selling any shares and will not receive any proceeds from the offering.

The selling shareholders, which include some Markit employees and other firms such as Bank of America, Deutsche Bank, Goldman Sachs and JPMorgan Chase, intend to sell 45,707,965 common shares in the offering, with the initial public offering price expected to be between $23.00 and $25.00 per common share. With over 178 million total shares in the company after the IPO, the company is likely to be valued at over $4 billion and could be close to $4.5 billion.

Bank of America Merrill Lynch, Barclays, Citigroup, Credit Suisse, Deutsche Bank Securities, Goldman Sachs, HSBC, J.P. Morgan, Morgan Stanley, UBS Investment Bank, BNP Paribas, Jefferies, RBC Capital Markets, RBS and TD Securities are acting as joint book-running managers for the IPO, and the underwriters will have a 30-day option to purchase up to an additional 6,856,195 common shares from certain of the selling shareholders.

According to Markit’s filing with the SEC regarding the offering, the firm had revenue of $259.4 million for the first quarter of 2014 and had an after-tax profit of $39.8 million.

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