LMAX Eyes Up to $5B Valuation Through Sale or IPO
LMAX Group, an institutional trading platform, is considering a possible sale or public listing that could value it at up to $5 billion. The company is working with Morgan Stanley and KBW's investment banking arm to review its options, which include a full sale, special purpose acquisition company merger, and initial public offerings in the U.S. or Europe.
A Nasdaq listing currently ranks as the preferred route for LMAX, but no formal public process has been started or a transaction agreed upon. The London-based company's valuation could be significantly higher than its last disclosed major private valuation of $1 billion in July 2021, when J.C. Flowers agreed to buy a 30% stake for $300 million.
LMAX operates trading venues and infrastructure for foreign exchange and digital assets, with clients including banks, brokers, hedge funds, and asset managers. The company's established foreign-exchange operation gives it a wider revenue base than companies that depend only on digital asset trading, allowing management and shareholders to wait for better market conditions.
The reported review comes as crypto firms seek scale through acquisitions and public listings, with several companies recently completing or announcing deals. LMAX's recent institutional partnerships, including a multi-year partnership with Ripple that provided $150 million in financing, may give it an advantage in the market.