Plus500 Decides To Go Public With IPO
Plus500 is a world one of the world leading forex brokers. Founded in Israel in 2008 Plus500 has managed to establish itself as one of the most successful global brokerage houses, claiming to have close to 60,000 active tradable accounts. The Forex market is rapidly expanding and competitors entering the marketplace daily, Plus500 has been able to set itself apart with exceptional service, professional Account Managers and the most technologically advanced trading platform in the market. Last year, Plus500 printed impressive operational results, including an annual turnover of $56 million and $23 million of profit (pre-taxes). This year shows the company profits climbing – for the first quarter of 2013 it has declared $7 million profit before tax. The global forex and CFD broker Plus500 plans an IPO (initial public offering) on London’s Alternative Investment Market (AIM), an exchange for junior business and smaller companies. The goal of the IPO is to raise $50 million in new and existing shares, the listing will be represented by the Liberum Capital consulting firm. This project translates into 25% of Plus500, currently valued at $225 million. The remaining 75% will be retained by the founders, who are sure that the initial offering will see share prices soar.
Plus500’s offering will be what is called a combined primary and secondary offering — with about half of the proceeds of the offering going to the company, and half going to some of the company’s existing shareholders, who will be selling some of their shares in the IPO.
Plus500 shareholders include Managing Director Alon Gonen, who holds about 40%. Gonen, along with Plus500 CEO Gal Haber had worked together previously. According to Israeli business newspaper Globes and LeapRate., Gonen and Haber had co-founded Interlogic Ltd., which operates online backgammon site Play65. Two other Plus500 co-founders, Shimon Sofer and Elad Ben Izhak, also hold 14% each. Omer Elazari and Shlomi Weizmann each own about 8.5%.
Plus500 is a strictly Internet company, and the first Israeli Internet company to float on the AIM since 888 Holding plc and Playtech Cyprus Ltd. in the summer of 2005 and the spring of 2006, respectively.
Israel and Cyprus have become the home of many of the leading forex and binary option brokers. Plus500 operates offices around the globe and are regulated in most of the major capitals as required by law. Plus500 has an exceptional reputation in fairness and transparency as well as security and protection of their clients’ funds. This IPO is successful will most likely be the start of an avalanche of other brokers trying to enter the public markets.