MarketAxess to raise $150 million through IPO

MarketAxess to raise $150 million through IPO

Consortium-owned electronic bond trading platform MarketAxess has filed for a $150 million IPO with US market regulators.

The MarketAxess prospectus, which was filed with the Securities and Exchange Commission on Wednesday, did not specify the number of shares it plans to issue nor offer an estimate of price per share.

The company, which is owned and controlled by a collective of nine bond dealing firms, says the proceeds from the issue will be used for general corporate purposes, including working capital and capital spending, with some of the cash earmarked for business expansion "through strategic alliances and select acquisitions".

Since launch three years ago MarketAxess has grown steadily, with revenue rising from $6.6 million in 2001, to $41.2 million for the nine months to 30 September, 2003. At the same time, net income has increased from a loss of $62.7 million in 2001 to a net profit of $4.7 million for Q3 2003.

Attention will now turn to rival networks, including multi-dealer-backed TradeWeb, which is rumoured to be talking with Thomson Financial after tentative take-over discussions with Reuters came to nought.

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