By Sri Hari N S and Arasu Kannagi Basil
(Reuters) - Shares of British commodities broker Marex Group rose 2.6% on Thursday in their market debut on the Nasdaq, notching a valuation of $1.38 billion.
The lukewarm debut of the London-based company was in contrast with recent strong listings on U.S. stock exchanges, underscoring that investors remain picky amid a tough economy as hotter inflation keeps interest rates elevated.
The stock opened for trading at $19.50 each, slightly above its initial public offering price of $19.
The company along with some of its existing shareholders raised $292.3 million in its IPO, selling nearly 15.4 million shares at $19 each, within its marketed range of $18 to $21.
"Marex looks like a solid company. There are some recent trading headwinds in its industry, and investors have been sensitive on valuations lately, but long-term this company is a market leader with double-digit revenue growth and a history of profitability," Matthew Kennedy, senior strategist at Renaissance Capital, said.
The company's listing is yet another blow to London capital markets, which witnessed a series of notable departures last year as domestic or locally listed companies shifted to New York in pursuit of greater liquidity and higher valuations.
The broker, backed by private equity firm JRJ, confidentially filed for an IPO in New York last December, two years after the company's failed attempt to list in London.
"It has been a blow to the European bourses as European companies switch their primary listing and/or do glitzy launches on the NASDAQ and NYSE," said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors.
Sports betting group Flutter (LON:FLTRF) Entertainment has also announced plans to shift its primary share listing from London to New York, joining building materials company CRH (LON:CRH), which moved its listing to New York last year.