Markit Ltd. (MRKT) Soars In Market Debut

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Markit Ltd. (NASDAQ:MRKT) stock opened this morning at $26.15 per share, which is approximately 9% higher than the company’s initial public offering price of $24 per share. That placed a value of approximately $4.7 billion when the markets opened this morning. The financial data provider raised almost $1.3 billion in its initial public offering.

Markit investors are worldwide

According to Reuters, one of Markit Ltd. (NASDAQ:MRKT)’s biggest shareholders is Temasek Holdings Pte Ltd., which has about a 10.47% stake in company through a subsidiary. Markit’s other major shareholders include Bank of America Corp (NYSE:BAC), Goldman Sachs Group Inc (NYSE:GS) and Deutsche Bank AG (NYSE:DB) (ETR:DBK).

Markit Ltd. (NASDAQ:MRKT) has been in existence for more than 11 years, becoming a major backbone of the world’s financial markets. The company created multiple indexes to track complex instruments’ performances, like credit default swaps. Because of how important Markit has become to the global markets, some of the biggest banks in the world are backing it, reports The New York Times. Twelve of Markit’s 15 underwriters are supporting the firm.

Big shareholders trim Markit stakes

After the IPO, several of Markit Ltd. (NASDAQ:MRKT)’s largest shareholders will cut their stakes. The fact that 80% of the company’s underwriters also sold shares in the IPO made the process more complicated. In order to address the conflicts of interest, Markit retained independent investment bank Jefferies as another underwriter. Also Rothschild is advising the process but not serving as an underwriter.

Bank of America Corp (NYSE:BAC)’s stake drops from approximately 8% don to 4.6% after the offering, making it the biggest seller among the company’s shareholders in the IPO. Bank of America expected to raise approximately $168 million in the IPO. Deutsche Bank AG (NYSE:DB) (ETR:DBK) is the next largest seller. It expected to raise almost $120 million in the IPO. Esta Investments, Temasek’s wholly-owned subsidiary, will see its stake fall a bit to 10.38%.

Markit’s revenue increases

Markit Ltd. (NASDAQ:MRKT) reported that profits attributable to stakeholders declined 21.5% in the most recently completed quarter to $39.8 million. Revenues increased by approximately 14% year over year to $259.5 million. In fact, Markit has reported increasing revenue for the last four years in a row. The firm gets approximately 49% of its revenue from its information segment. That segment offers a number of different liquidity, trading, risk assessment, and valuation products.

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