A new one just come up today. Last year they did pre-IPO roadshow to raise $100m with market cap of $200m+..
That didn't go down well with the fundies. So they restructured the deal. Market cap $158m raising $25m.
The P/E is pretty good but that's for CY not FY. They make a lot of revenue towards the end of the year it seems and this has been pretty consistent in the past few years.
The revenue growth is awesome and revenue is booked in USD.
With Pepperstone IPO on ice due to the 40% revenue loss from Japanese, this could be the next interesting one.
PS: they survived (and made profit) on the SNB tragedy which brought down a number of other big Forex brokers (FXCM, etc)
Thoughts?
Offer Price $1.00 per share
P/E for CY15 10x
Market Cap $158m
BUSINESS OVERVIEW
• Founded in 2009, FXPRIMUS is a multiple award-winning retail FX broker firm offering a world class online trading platform with superior technology, liquidity, and trade execution normally only available to institutional clients. FXPRIMUS serves clients in 30 countries.
• FXPRIMUS generates revenue primarily from Commissions, Spread Markup, Position Management and Swaps
• FXPRIMUS offers trading in over 150 instruments ranging from Forex and CFD’s over precious metals, oils, commodities, index’s and global equities
• The Company currently has > 5,000 active clients and client equity as at 31 December 2014 reached US$43m, with funds predominantly coming out of Asia
• The recent acquisition of CMS UK, a highly regarded FCA regulated broker, positions FXPRIMUS to expand its institutional business and extend its global reach. This will diversify FXPRIMUS’s revenue and over time create smoothing of monthly revenue as institutional business is typically more consistent and less reliant on volatility
INVESTMENT HIGHLIGHTS
• A global provider of FX trading and execution services with an award winning reputation for client fund safety, education and support
• Attractive global FX trading market and competitive landscape ready for consolidation
• Robust global trading infrastructure with a scalable and flexible online platform
• Highly regulated industry and strong internal risk management culture
• Track record of strong revenue and earnings growth with strong operating cash flow (CY2013-CY2015F)
• Future earnings growth opportunities through established organic initiatives and through acquisitions
• Highly experienced management and board with a clear and focused strategy
STRATEGY Grow underlying business through organic initiatives:
• Expansion into new markets
• Growth in number of active accounts
• Increasing activity per account with existing accounts from increased macro market volatility
• Growth in new institutional business from organic sources and additional introducing brokers Grow underlying business through selected bolt on acquisitions
• Numerous opportunities to grow client books and market share through the acquisition of stressed competitors
