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Argentex trades in private setting for the public arena
Posted on Wednesday, 12 June 2019 12:07
Argentex Group, the UK-based foreign exchange service provider founded in 2011 by its current management team, has taken the first step on its way to holding an initial public offering (IPO) by submitting an application to list on London’s AIM market.
Numis Securities is nominated advisor and broker for the float, which is expected to complete by 25th June, though no further details are currently known.
London-based Argentex operates through subsidiary Argentex LLP as a riskless principal for non-speculative and forward foreign exchange as structured financial derivatives.
The group provides commercial foreign currency exchange services for either immediate delivery, known as spot contracts, or for delivery at a fixed exchange rate at a future date (forward contracts).
It delivers tailored, deliverable foreign exchange advisory and execution services to a global client base consisting principally of institutions, corporates and high net worth individuals.
Argentex LLP has been profitable since inception in 2011 and in the 12 months ended 31st March 2019, delivered a 38.0 per cent increase in gross notional currency traded to GBP 10.80 billion (FY 2018: GBP 7.80 billion).
Revenue for the year totalled GBP 21.90 million, which was up by two-thirds on the GBP 13.20 million recorded in 2018, while operating profit jumped 77.9 per cent to GBP 11.50 million (FY 2018: GBP 6.46 million).
Co-founder and joint chief executive Carl Jani said of the results released on the group’s website on 21st May: “We have delivered 46.0 per cent compound growth since 2016, as well as a record month of trading in March.”
Pacific Investments is currently the largest shareholder with a 23.9 per cent pre-IPO stake, followed by Jani and fellow co-founder and chief executive Harry Adams, each with an 18.18 per cent interest.
Argentex joins 20 other IPO hopefuls this year: Zephyr, the M&A database published by Bureau van Dijk shows that of the 20 listings announced in 2019 to date, currency exchange holding company Finablr currently accounts for the largest by value.
© Zephus Ltd