Markit Opens 10 Percent Above IPO, Continues Higher
Traders embraced Markit (NASDAQ: MRKT) Thursday morning, as the global financial information services firm opened its initial public offering for trading.
The 53.3 million share IPO priced Wednesday night at $24 per share, in the middle of the expected $23 to $25 range.
At 10:31 a.m. ET the stock opened for trading $2.15 higher at $26.15. During the first three minutes, the stock tapped a low of $26.06 before moving to new highs in strong trading.
The stock is currently trading at a high of $27.28, despite broader market weakness.
Markit describes itself as, “a leading global diversified provider of financial information services. We provide products that enhance transparency, reduce risk and improve operational efficiency. Our customers include hedge funds, asset managers, central banks, regulators, fund administrators and insurance companies.”
Markit's 2013 customer base included over 3,000 institutional clients across the globe. Nearly 50 percent of revenues were derived from U.S.-based firms, with the rest coming from an array of worldwide locations.
Between 2011 and 2013, the company grew revenues by 24 percent, from $762.5 million to $947.9 million, resulting in net profit growth of almost 11 percent from $125.8 million to $139.4 million.
Markit's market opportunity is to be a nimble third-party provider, able to deliver a broad spectrum of services that can meet the growing demands of a dynamic technology and regulatory environment. By keeping ahead of the changes, Markit will focus on firms that are, “focused on rationalizing costs and increasingly view third-party products and services as effective means of achieving cost efficiencies.”
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