Marex to Test Commodity Rally With Up to $165 Million London IPO

Commodities brokerage Marex Group Plc’s holders are seeking as much as 115 million pounds ($165 million) in an initial public offering in London, on the back of a strong run in raw material prices.

Holders including investment firms JRJ Group, Trilantic Europe and BXR Group are selling as many as 29.9 million shares at 345 pence to 385 pence apiece through June 8, with the stock set to start trading the next day, according to terms seen by Bloomberg. The listing values Marex at as much as 460 million pounds, the terms showed.

The planned share sale comes amid this year’s commodities boom, which ran into a bit of volatility in recent weeks in the wake of Chinese government moves to curb prices.

Marex, which is one of the largest dealers on the London Metal Exchange, is betting on further consolidation in the industry as smaller brokers struggle with an increasing regulatory burden and tougher technology demands.

The company is the first major commodity trader to list in London since Glencore Plc in 2011. The IPO would add to a surge in London listings, with the more than $10 billion raised this year already exceeding total proceeds across all of 2020, data compiled by Bloomberg show.

Underwriters can sell additional shares if there’s sufficient demand, which could lift Marex’s offer size to as much as 132 million pounds.

Goldman Sachs Group Inc. and JPMorgan Chase & Co. are joint global coordinators on the listing, while Barclays Plc is the bookrunner and Peel Hunt LLP is the co-lead manager.