Marex heads to New York in fresh City snub

Marex has announced plans to go public in New York following the latest blow to London's stock market.

The commodities broker, a member of the London Metal Exchange, said yesterday it has filed documents with the US regulator ahead of launching an initial public offering (IPO).

Marex, which is backed by British private equity firm JRJ, abandoned an attempt to go public in London two years ago, citing difficult market conditions.

The company's decision to revive its plans to float in New York is the latest criticism of the city.

It follows Cambridge-based chipmaker Arm's decision to enter the US earlier this year.

Departure: Marex abandoned an attempt to go public in London two years ago, citing difficult market conditions

MPs yesterday criticized the “limited” impact of the government's program to overhaul city rules to make London a more attractive place to do business.

The Treasury committee branded the government's so-called Edinburgh reforms a 'wet footprint' as a flood of businesses leave the Square Mile. Marex confirmed yesterday that it has confidentially filed a draft registration statement with the US Securities and Exchange Commission (SEC).

The size and price range of the proposed offering have not yet been confirmed and the IPO will take place following the SEC's review process, “subject to market and other conditions.”

According to reports, the company is aiming for a valuation between £1.8 billion and £2.2 billion, which is three to four times more than the target when it planned to list in London in 2021.

Richard Hunter, head of markets at Broker Interactive Investor, said: 'The decision is the latest blow to London's reputation as a global investment hub.

'The calls for reform in the British market will now become louder.' And yesterday, Paddy Power owner Flutter confirmed it will make its debut on the New York Stock Exchange next month as it expects further growth in the US.

Flutter, which also owns Betfair and Poker Stars, will not leave London and will remain in the FTSE 100. Flutter said it will cancel its secondary listing in Dublin.

Last week, travel operator Tui said it was considering delisting from London and upgrading to a premium listing in Germany. It said most of its shares are owned and traded in Frankfurt.

Arm was listed in New York in September and CRH, the Irish construction supplier, switched its listing from London to New York this year.

Last summer, plumbing giant Ferguson delisted London from the FTSE 100 as its primary listing in favor of New York after selling its British operations to US private equity firm Clayton, Dubilier & Rice.